Interesting article in WSJ that looks at how taxes could impact retirement savings. Anybody agree or disagree with the findings?
I don't think that is really a fair comparison. I don't disagree with their numbers, it's just they are actually comparing different levels of contribution and making it seem like the outcome is because of the type of account. Contribution $5,000 to a Roth is actually allocating more of your resources to a retirement account, then contributing $5,000 to a traditional 401k or IRA. The title could also read, 'Can't Save? Change your contribution percentage instead of blowing your refund on vacation.'
Brian the saver just choose to pay extra tax on his investments. There should be a forth hypothetical investor, let's call him Pete the mustache, who reduces his tax withholding and increase his 401k contribution up to $6,944.
