The debate about 401(k)s vs Roth accounts isn’t really about “good or bad”

Added: 2026-05-20

[00:00:00]I have a lot of money in my 401k.

[00:00:02]>> Okay, I'm sorry for you. And why do you feel sorry for me?

[00:00:04]>> It's a way for you to be trapped for 30 years. You will wish you would have sold it when you were 50 cuz you'd pay a lower taxes, dude.

[00:00:09]>> You don't pay any taxes when you pull out money out of your 401k if you wait until you're 63.

[00:00:13]>> When you start using that money, you're going to pay taxes, bro. You weren't charged taxes while it sat there.

[00:00:17]>> Let me explain the part people miss.

[00:00:18]When you put money in a regular 401k, you don't pay taxes now, but when you take it out later, you pay the taxes on every single dollar, principal and the growth. If you make good money now and want to live well later, you might pay more taxes than you think. Most people don't know this option exists. You can actually put money in a Roth 401k instead. You pay the taxes now, but you never pay taxes ever again.