401(k) vs Roth 401(k): Which Employer Retirement Plan Should You Prioritize?

Traditional 401(k) contributions reduce your taxable income now but are fully taxed upon withdrawal. Roth 401(k) contributions are after-tax, but qualified withdrawals are tax-free. Both receive employer matching. If you expect to be in a higher tax bracket in retirement, prioritize Roth. If you need tax relief now, traditional may be better. Many advisors recommend splitting contributions between both.