Which Is Better for Retirement: Pre-Tax or After-Tax Contributions?

Ramsey Everyday Millionaires

Ramsey Network

Business, Careers, Investing

4.8 • 3.6K Ratings

🗓️ 4 July 2025

⏱️ 4 minutes

🔗️ Recording | iTunes | RSS

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Transcript

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0:00.0	This episode is brought to you by SmartVester.
0:07.7	Connect with an investing pro near you at ramsysolutions.com slash smartvester.
0:12.3	Okay, let's get to, this is really fun.
0:16.2	Sorry we missed your call.
0:18.2	Hello, my name is Chris.
0:20.7	I'm currently putting into a Roth IRA right now or a 401K.
0:27.1	And I just wanted to know the difference between the pre-tax and the after-tax contributions
0:33.7	to see if there's any benefits of the pre-tax and the non-pre-tax. And I just want to see if there's any benefits of the pretext and the non-pretext.
0:40.2	And I just want to see if I get some answers on that.
0:42.4	Thank you and have good day.
0:43.4	All right.
0:44.0	Thank you, Chris.
0:44.6	I appreciate that.
0:45.4	Well, first of all, I love that Chris could have Googled this, but instead he called us.
0:48.8	That really means a lot in a world that's going very digital, very AI.
0:52.1	He went analog.
0:53.5	He said, let's get some humans to answer
0:55.1	this. I'm that kind of guy. I don't want to look it up. I want somebody to tell me. Just tell me.
1:00.4	Just tell me. So here's the conversation, pre-tax versus after-tax. So when you think about this,
1:05.3	here's the way that makes it easy. When you see something like a traditional IRA, traditional 401K, just think pre-tax.
1:12.9	That's right.
1:13.2	Another way to say that is tax deferred.
	...

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