Respond to the following: If I was attending a Human Resources orientation at my new job, I would do the Roth 401(k). This is because there are more pros than cons going this path. On Roth is tax free, made after tax dollars (meaning I would pay the tax from that paycheck). Traditional is a tax-deferred till it is withdrawn, it's pre-tax dollars where I would pay the tax when it's time to withdrawal. Both of them if there is a withdrawal prior to the age of 591/2, you may pay taxes on the contributions and earnings plus a 10% tax penalty pay occur. After reviewing these facts, I would go with Roth and contribute the max of 5% of my salary. I would choose this percentage only because I would want to contribute the max. I would only choose the automatic 1% annual increase to my contribution, if my employer was doing the same. If not, then no I would not contribute to the annual increase