What Is A Roth 401(k)
Published in General
If you’ve been reading a lot about Roth IRA’s, it stands to reason that you’re also potentially interested in a similarly structured retirement vehicle - the Roth 401(k). A rather comprehensive discussion of the Roth 401(k) is available at MyRetirementBlog.com but here’s a brief recap.
A Roth IRA is to a Traditional IRA as a Roth 401(k) is a Traditional 401(k). Roth 401(k) contributions are not tax deductible, grow tax free, and share the same contribution limits as the “traditional” 401(k) it’s based off. The only tricky part about a Roth 401(k) is that any employer matching contribution goes into the “traditional” bucket and not all employers offer the Roth 401(k). In fact, not many at all offer it.