[alnorth]

I am skeptical.

Many employers are beginning to offer the Roth 401k where you can choose to contribute after tax money (In my situation it didnt make sense, the deduction now is worth more than tax-free later when I'll probably retire at a lower bracket.) However, my employer and every similar plan I've heard of will have the employer contribute pre-tax money, even if you decide to contribute post-tax for your share.

Maybe your different, anyway it depends on your income and this is a relevant question for your own contributions anyway.

MY OPINION is the following: If you are currently in the 25% bracket, it makes more sense to contribute pre-tax money until you deduct yourself into the 15% bracket, then switch to the post-tax contribution.

If your deep into the 25% bracket or worse, put it all in pre-tax and get the deduction now. If your in the 15% bracket, pay the tax now. If your barely in the 25% bracket, do both, first the pre tax till you knock yourself down a bracket, then post-tax.