Roth 401(k) vs Traditional 401(k): Which is Better for Taxes and Inflation? - YMYW podcast

For the full podcast episode, transcript and show notes, visit bit.ly/YMYW-198
On the Your Money, Your Wealth® podcast, Joe Anderson, CFP® and Big Al Clopine answer this question from Marcus: "Greetings Big Al, and Joe(Joel), First off, I thoroughly enjoy the podcast. Earlier this year I caught up on YMYW seasons 1-4 via youtube and just recently found the podcast. I am still enjoying it all. Now to the question. When it comes to 401k VS Roth 401k and the whole tax issue( I know its been a back and forth about which is better and why) BUT..... how does inflation factor into this equation? My thoughts are Roth 401k is better because taxes are already paid and it grows tax-free so my money is my money and none is the governments. Argument 1. is that you "typically" will be in a lower tax bracket blah blah in retirement so defer your tax payment BUT how does this hold up when inflation is factored into the picture?? Given inflation will happen, isn't it wise to "pre pay" taxes now? Hypothetical if I am in the 22% tax bracket now and I think I will be in the 12% tax bracket in the future so I defer taxes until then. Given there is a 20+ year retirement time horizon when inflation is factored in how does this 12% tax rate hurt my pockets? Is there a chance I won't be in the 12% bracket because I need to take out more money due to inflation? Am I missing something around inflation and taxes? Help me understand this scenario."
Listen to the podcast: bit.ly/YMYW-198
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