Should I choose a traditional 401(k) or a Roth 401(k)?

It comes down to whether you'd rather skip taxes now or skip them in retirement. Traditional 401(k) contributions are pre-tax — they lower this year's taxable income, and you pay ordinary income tax when you withdraw later. Roth 401(k) contributions are made with after-tax dollars, so there's no break today, but qualified withdrawals in retirement are completely tax-free. The rule of thumb: choose traditional if you're in a high bracket now and expect lower income later; choose Roth if you're early-career, in a low bracket, or expect higher future tax rates. Many people split the difference. The 2025 employee limit ($23,500, plus $7,500 catch-up at 50+) is shared across both — it's one combined cap, not one each. Run the trade-off at wealthserene.com/tools/roth-vs-traditional.