Contribute Pre-tax or Roth After-tax

Which route is best for you?

Why would anyone choose to pay taxes now rather than later? The answer for some people is to have more tax-free income when they retire. The decision, however, is not the same for everyone and what is right for you depends on your individual situation.

Answer the questions below and follow the path indicated to make a preliminary determination as to which type of MNDCP plan contribution – traditional pre-tax or Roth after-tax – might be best for you.

Can’t Decide?

Consider both pre-tax and Roth after-tax contributions.

A combination of pre-tax and Roth after-tax contributions may be right for you if:

  • you like the idea of tax-free retirement income, but also like the current tax deduction on your pre-tax contributions.
  • you believe your taxes in retirement will be about the same or are unsure where taxes are headed in the future.
  • you would like the flexibility to optimize your tax strategy year-to-year as you withdraw your retirement income.