This is a question for you to discuss with a local professional retirement planner but here is my 2 cents ...
At your age taking such a hit to your balance in the account will take quite some time to be made up in the long run. The more you reduce your investment by paying taxes in advance will hinder it's ability to increase in value especially if you are not investing in high risk situations. I doubt you will be getting the 10% in the following example :
The Rule of 72
The rule of 72 is a simple method to determine the amount of time investment would take to double, given a fixed annual interest rate. To use the rule of 72, divide 72 by the annual rate of return.
For example, assume an investor invests $20,000 at a 10% fixed annual interest rate. He wants to estimate the number of years it would take for his investment to double. Instead of using the rule of 70, he uses the rule of 72 and determines it would take approximately 7.2 (72/10) years for his investment to double.
