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401(k) Conundrum - Is a Roth or Traditional Best for Millennials?

Which retirement account is best for millennials - a Roth 401(k) or a traditional 401(k)? Mr. Retirement's Robert Powell explains in this video.

The old adage, "You're never too young to start saving" could never be more true. But knowing the best way to save can be confusing.

Roth vs. Traditional 401(k)

Millennials who are just entering the workforce might be in a low tax bracket now and a high tax bracket later on in their careers. That means in retirement they stand to benefit more from contributing to a Roth 401(k) or Roth IRA than a traditional 401(k) or IRA.

By contrast, those who might be in high tax bracket now and a low tax bracket in retirement stand to benefit more from contributing to a traditional 401(k).

TheStreet Recommends

TheStreet's Robert Powell walks you through what you need to know about retirement savings in the video above.

And check out more from TheStreet's new video series 'Ask Bob' below:

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