401(k) Tax Strategy Question

401(k) Tax Strategy Question – Ask The Hammer: In this episode of Ask The Hammer, financial expert Jeffrey Levine analyzes the strategy of contributing to a pre-tax 401(k) while investing the tax savings in a taxable account or Roth IRA, weighing its pros, cons, and key considerations for optimizing retirement outcomes. The Hammer answers this question from a viewer: I’m contributing to my company’s pre-tax 401(k) plan instead of my Roth 401(k), I plan to invest the tax savings in a taxable account or if I’m eligible, a Roth IRA and then I hope the money in those accounts will grow large enough to pay whatever taxes are due when the time comes for me to start withdrawing money from the pre-tax accounts. Watch more episodes of Ask The Hammer at this link: https://www.finstream.tv/videos/ask-the-hammer/