Suppose I want to put 10% of my income in a 401(k). There are two options: (i) put it in a pre-tax 401(k) of a a Roth 401(k). If I expect the tax rates to be higher in the future, would this be a good strategy:
- Put 2% of income into Pre-Tax 401(k)
- Put 8% of income into Roth 401(k)
Would this be better than putting 10% of income into a pre-tax 401(k) assuming that the tax rates go up in the future?