In the 12% bracket the Roth is a great choice. It's costing you 12% in tax to make those contributions, but after tax free growth and withdrawals you will almost certainly come out ahead. When you get to the 22% or 24% bracket and above, the benefit is less clear, at least to me. I think in 24% bracket it can be better to make Traditional contributions plus invest an extra 24% taxable. Even though you'll pay tax on withdrawals, you'll end up with around 24% more savings, and that can pay for a lot of taxes in retirement.