[humandraydel]

You are correct in that AFTER tax contributions to a 401k will not be taxed when withdrawn at retirement. However, the EARNINGS on that contribution will still be taxed. And when you think about it, after compounding for 30 years, the earnings will be WAY more than your contribution. The only good thing about after tax contributions is that they will grow tax deferred. You won't get the "tax break" now though.

The general pecking order (for retirement savings) is this:

1. 401k contribution up to maximum company match
2. Max Roth IRA (if eligible)
3. Max 401k with pre-tax dollars (assuming funds are decent)
4. Contribute post-tax dollars to 401k
5. Contribute to a taxable account