# Traditional vs. Roth 401(k) – Best strategy for side hustlers

Page: https://stenobird.com/podcast/money-girl-689731/traditional-vs-roth-401-k-best-strategy-for-side-hustlers
Text version: https://stenobird.com/podcast/money-girl-689731/traditional-vs-roth-401-k-best-strategy-for-side-hustlers.md
Podcast: [Money Girl](https://stenobird.com/podcast/money-girl-689731)
Published: 2026-07-03T09:00:00+00:00
Episode link: https://shows.acast.com/money-girl/episodes/traditional-vs-roth-401k-best-strategy-for-side-hustlers
Audio file: https://sphinx.acast.com/p/open/s/69c148bb1a160b44db9c8fcc/e/6a3d990926d5a6687a55db93/media.mp3
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JSON: https://stenobird.com/v1/public/podcasts/money-girl-689731/episodes/traditional-vs-roth-401-k-best-strategy-for-side-hustlers
Duration seconds: 1037

## Resource

1032. Do you have extra side hustle income that’s pushing you into a higher tax bracket? In this episode, Laura answers a listener’s question about whether new self-employment earnings mean it's time to switch from a Roth to a traditional 401(k) or IRA. You’ll learn how to use retirement contributions to lower your taxable income today, the fundamental tax differences between these accounts, and how to choose the best strategy for your small business income.  Key takeaways Traditional retirement accounts allow tax-deductible contributions, but withdrawals in retirement are fully taxed. Roth retirement accounts don’t have an upfront tax benefit, but allow your investment growth and future retirement withdrawals to be entirely tax-free. Choosing between a traditional and Roth account depends on guessing about your future tax rate, but could also be a preference for having taxable or tax-free income in retirement.  If you believe your tax rate is lower today than it will be in retirement, choose a Roth. If your income increases so that your current tax rate is higher today than you expect in the future, choose a traditional retirement account.  Using a hybrid approach and splitting retirement investments between traditional and Roth in the same year can be wise. When you have self-employment income, you qualify for small business plans, such as a solo 401(k) or a SEP-IRA. Discover more from Money Girl! Facebook Newsletter Transcripts available at QuickandDirtyTips.com . Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308. Hosted on Acast. See acast.com/privacy for more information.

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