Is Roth Right for You?
With more employers offering Roth 401(k)s, it's important to understand some of the ways traditional and Roth 401(k)s are the same and different.
While both provide tax benefits and similar features, the key difference between them has to do with how they are taxed. With a traditional 401(k), taxes are paid when you take money out in retirement. With a Roth 401(k), taxes are paid when you make contributions.