401k & Retirement Investments?

I heard Suze Orman talking on one of her shows one time about using after TAX $ dollors for retirement rather than the pre-tax 401k retirement plans because of how the taxes could be later on in life, does anyone know what I'm writing about or have any other info on this or what it was she was talking about?

is she talking of using a roth ira instead of the 401k or ira pre-tax?

what i bet she is saying is that we are at a low point in taxes, with social security and medicaid problems the only way taxes can go is up, so pay taxes at a low point now and you dont have to pay taxes 35 years from now in retirement at a possible 39% instead of your present 25% , or whatever numbers you want,

no matter what though contribute enough in your 401k to get the company match, thats free money, after that you can put it in your roth ira and never pay taxes on that money again

Suze Orman is a big proponent of the Roth 401k. She is making the assumption that tax rates will be higher when people are going to retire then they are now. Given the amount of debt that this country is in that's not a bad premise. But you have to listen closely because she advocates contributing hard and early into the AFTER-TAX retirement accounts. That's because your pay and thus your tax rate is low. More likely that your retirement tax rate will be higher. Additionally you'll have tons of time for the compounding to take effect. As you get older the benefit switches...The tax benefit of the 401k becomes more valuable. Also, it's less likely that you will be in a higher tax rate when you retire.

As for which is better? Well, I've seen the numbers run both ways and many financial advisors are touting the Roth...but in reality? Barring a huge tax rate increase it's a push. So the best thing to do is to contribute to both. That gives you the greatest flexibility.

Heres an article i found http://siteFwd.com/6VR on retirement planning and the best plans to take.