Does the employer match go to Roth too?

Historically no, the match always went into Traditional. SECURE 2.0 (2023) lets plans offer Roth matching if they choose; many haven't implemented it yet. Check your plan.

Can I roll a Traditional 401(k) into a Roth IRA?

Yes, but it's a taxable conversion in the year you do it. Common strategy in low-income years (e.g., between jobs or early retirement before Social Security) to fill up low brackets.

Are required minimum distributions the same?

RMDs apply to Traditional but not Roth IRAs. Roth 401(k)s used to have RMDs but SECURE 2.0 eliminated them starting in 2024. Roth wins on inheritance flexibility.

Decision guide · Retirement

Roth vs Traditional 401(k): Which Should I Choose?

By Yinka Olayokun Published May 12, 2026 Reviewed May 12, 2026

Recommendation

Choose Roth if you expect your tax bracket in retirement to be HIGHER than today (early career, low-income year, or strong income growth ahead). Choose Traditional if you expect it to be LOWER (peak-earning years, planning to retire in a lower-tax state). When uncertain, split 50/50, the tax diversification has measurable value in retirement.

What would flip the answer

If this is true…	…lean toward	Why
In the 12% or 22% federal bracket	Roth 401(k)	Current low rate makes paying tax now a bargain.
In the 32%+ bracket	Traditional 401(k)	Defer at high rate, withdraw at likely lower rate.
Early career, income rising fast	Roth 401(k)	Today's rate is almost certainly your low point.
Expect to retire in a no-income-tax state	Traditional 401(k)	Deduct at state-tax rate now, withdraw with no state tax later.
Already have a large Traditional balance	Roth 401(k)	Diversifies tax exposure in retirement.
Want max contribution flexibility	Roth 401(k)	Roth contributions can be withdrawn anytime, penalty-free.

The core math

Both grow tax-free inside the account. Traditional saves taxes now, owes them in retirement. Roth pays taxes now, owes nothing in retirement. If your tax rate is identical now and later, both end up with EXACTLY the same after-tax outcome. The bet is purely on relative tax rates.

Why most experts now lean Roth for young earners

U.S. tax brackets are at historic lows post-2017 TCJA, which sunsets in 2026. With a likely upward drift in long-run brackets, locking in today's low rate via Roth is a defensible default for anyone in the 12–22% bracket. The 'today's bracket is lower than future' assumption flips for high earners.

Frequently Asked Questions

Does the employer match go to Roth too?: Historically no, the match always went into Traditional. SECURE 2.0 (2023) lets plans offer Roth matching if they choose; many haven't implemented it yet. Check your plan.
Can I roll a Traditional 401(k) into a Roth IRA?: Yes, but it's a taxable conversion in the year you do it. Common strategy in low-income years (e.g., between jobs or early retirement before Social Security) to fill up low brackets.
Are required minimum distributions the same?: RMDs apply to Traditional but not Roth IRAs. Roth 401(k)s used to have RMDs but SECURE 2.0 eliminated them starting in 2024. Roth wins on inheritance flexibility.

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