401k pre or post?

[wasupbaby]

Hello
I'm trying to create 401k since my company matches 100% upto 3% of compensation and 50% of next 3%.

My questions is what to do between pre-tax and pro-tax(it's called Roth?).
I read a lot of threads but I still cannot get a clear understanding.

I'm in 15% income bracket.
expect to move up to higher bracket in few years. (I should add 'hopefully')

Could you please tell me pros and cons? maybe in real numbers?
Any advice will be appreciated deeply!

Thank you

 

[diGriz]

Hello...Any advice will be appreciated deeply! ...Thank you

Forget this 401k government scam.

I send all my money into a N.L.I.F. (Nigerian Lottery Investment Fund).

I keep sending my investment adviser money to access the funds and as soon as he fixes the glitches with his email (any day now), I will have money "out the wazoo" (his words).

If your're interested, let me know (I get a referral fee).

 

[DanC]

And now for a serious answer:
A Roth IRA (post tax) works like this: You make money, your employer withholds some for the government. Part of the money then goes into the roth. Any earnings you make on that money is yours tax free.
A regular IRA works like this: you make money, part of it goes to the IRA, your employer withholds some for the government. You've not paid the 15% income tax on that part that goes into the IRA, but every penny it earns is taxed.
If I were in your stage of life, I'd go with the Roth.
AND find a financial adviser that speaks plain English so you can understand him.