Review:
Roth 401(k)
overall review score: 4.5
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score is between 0 and 5
A Roth 401(k) is a retirement savings plan that combines features of a traditional 401(k) with those of a Roth IRA.
Key Features
- Contributions are made with after-tax dollars
- Earnings grow tax-free
- Qualified withdrawals are tax-free
- May offer employer matching contributions
Pros
- Tax-free withdrawals in retirement
- May offer employer matching contributions
- No income limits for participation
Cons
- Contributions are made with after-tax dollars, reducing take-home pay
- Not all employers offer Roth 401(k) options