You're listening to Ramsey Everyday Millionaires, where we talk retirement, building wealth,

and outrageous generosity.

Today's question comes from Evan in Michigan.

He says, I'm 34 years old and I earn over $300,000 a year working in software engineering.

I've always thought that Roth 401ks are the way to go for retirement savings.

However, due to my income amount, wouldn't it be better to defer the taxes until retirement

when income is more likely to be lower or pay the taxes at my current rate?

My thought process is that my wife and I will likely live on significantly less than retirement,

so wouldn't it make more sense to pay the taxes then?

It's a good question.

Well, it is.

The problem is that the tax rates are not stable.

They change with the political wins, and so you can't use that set of assumptions to work,

because they might just look up and go, oh, anybody who saved a million dollars or more

gets taxed double because they're evil and they must be punished.

There is that whole group of people out there that want that kind of tax law enacted.

I don't think it'll happen.

I hope it doesn't happen, but it could happen.

That's the problem number one with that theory.

The other thing that happens is when you have everything in a Roth, it's 100% tax-free

under current law, you do not have to deal with the required minimum distributions.

You're not required to pull the money out, and so it can just sit there.

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