Review:
Roth 401(k) Plans
overall review score: 4.5
⭐⭐⭐⭐⭐
score is between 0 and 5
Roth 401(k) plans are retirement savings accounts that combine features of traditional 401(k) plans with those of Roth IRAs.
Key Features
- Contributions are made on an after-tax basis
- Earnings grow tax-free
- Withdrawals in retirement are tax-free
- Have required minimum distributions starting at age 72
Pros
- Tax-free withdrawals in retirement
- Flexibility in contribution options
- No income limits for participation
Cons
- Contributions are made with after-tax dollars
- Mandatory withdrawals starting at age 72