I've just moved to US and I started considering savings/retirement options (I'm mid-20 but I don't think it unwise to start early). I'm trying to max the contributions. I started to think if the ROTH accounts does not allow for de-facto larger contributions.
Assuming I contribute maximum amount of money (18000 USD for 2015 to 401k or 5500 to IRA) which would grow to some value I would get amount lower then that as I would pay taxes on it. However if I contributed the same amount to 401k ROTH/IRA ROTH I would get the full amount at the cost of paying tax now. While I could consider investing the saved money into a account it would be taxable for gains and therefore would cost more.
Am I missing something?