Since the tax brackets are changing (and not for the better 🫠) for 2024, should we be putting more money into a pretax retirement account vs. our Roth IRAs? 

We are currently comfortably in the 12% bracket (~105k/year, MFJ), but that will change to 22% for next year. I have been putting more of an emphasis on our Roth contributions. We have the cash to max out our Roths in January 2023, but after that... do we focus on the 401k/457b?  A mix of both?
The decision to contribute to a pre-tax retirement account (like a 401k or 457b) or a Roth IRA depends on your current tax rate and your expected tax rate in retirement. 

Roth IRAs are funded with after-tax dollars, meaning you pay taxes now, but qualified distributions in retirement are tax-free. This can be beneficial if you expect your tax rate in retirement to be higher than your current rate.

Pre-tax accounts like a 401k or 457b are funded with pre-tax dollars, meaning you get a tax deduction now, but will pay taxes on distributions in retirement. This can be beneficial if you expect your tax rate in retirement to be lower than your current rate.

Given your situation, with a potential increase in tax rate from 12% to 22%, it may make sense to contribute more to your pre-tax accounts in 2024. This would give you a tax break now, when your tax rate is higher. 

However, it's also important to consider your long-term expectations. If you expect your tax rate in retirement to be even higher than 22%, it might still make sense to prioritize Roth contributions. 

Diversifying your retirement savings can also be a good strategy. By having both pre-tax and Roth accounts, you will have some flexibility in retirement to manage your taxable income. 

As always, it's recommended to consult with a tax advisor or financial planner who can look at your specific situation and help you make the best decision.
### Human
Since the tax brackets are changing (and not for the better 🫠) for 2024, should we be putting more money into a pretax retirement account vs. our Roth IRAs? 

We are currently comfortably in the 12% bracket (~105k/year, MFJ), but that will change to 22% for next year. I have been putting more of an emphasis on our Roth contributions. We have the cash to max out our Roths in January 2023, but after that... do we focus on the 401k/457b?  A mix of both?

### Assistant
The decision to contribute to a pre-tax retirement account (like a 401k or 457b) or a Roth IRA depends on your current tax rate and your expected tax rate in retirement. 

Roth IRAs are funded with after-tax dollars, meaning you pay taxes now, but qualified distributions in retirement are tax-free. This can be beneficial if you expect your tax rate in retirement to be higher than your current rate.

Pre-tax accounts like a 401k or 457b are funded with pre-tax dollars, meaning you get a tax deduction now, but will pay taxes on distributions in retirement. This can be beneficial if you expect your tax rate in retirement to be lower than your current rate.

Given your situation, with a potential increase in tax rate from 12% to 22%, it may make sense to contribute more to your pre-tax accounts in 2024. This would give you a tax break now, when your tax rate is higher. 

However, it's also important to consider your long-term expectations. If you expect your tax rate in retirement to be even higher than 22%, it might still make sense to prioritize Roth contributions. 

Diversifying your retirement savings can also be a good strategy. By having both pre-tax and Roth accounts, you will have some flexibility in retirement to manage your taxable income. 

As always, it's recommended to consult with a tax advisor or financial planner who can look at your specific situation and help you make the best decision.<eos_token>