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Review:

Roth 401(k)

overall review score: 4.5
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

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Last updated: Sat, Feb 1, 2025, 04:15:16 AM UTC