May 29, 2019
Most employers now offer a Roth 401(k) as a retirement account option, but a recent survey shows few workers have them.
Consumer Reports calls that "a missed opportunity" because a Roth 401(k) is one of the best options for building a stash of tax-free savings.
While contributions to traditional 401(k)s are made with pretax dollars, Roth 401(k)s are funded with after-tax dollars. That means, when it's time to withdraw that money, you don't pay any taxes on it.
Like traditional 410(k) plans, Roth 401(k)s are eligible for your employer match and there are no limits on how much you can contribute.