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 Roth IRA accounts.
Key Features
- Contributions are made with after-tax dollars
- Withdrawals are tax-free in retirement
- No required minimum distributions during the account holder's lifetime
Pros
- Tax-free withdrawals in retirement
- Flexible contribution options
- No income limits for eligibility
Cons
- Contributions are made with after-tax dollars, reducing current tax benefits
- Employer match contributions are still made with pre-tax dollars