3 Reasons a Roth 401(k) Should Be on Your Radar
There are many different retirement plans out there that provide tax advantages. But there's one type of account that's become more common in recent years as a growing number of employers have started offering it to workers: a Roth 401(k).
A Roth 401(k) works differently than a traditional 401(k) in that there's no upfront tax break. When you contribute to the account, you're doing so with after-tax dollars and not saving anything on your IRS bill in the year you invest. With a traditional 401(k), you make pre-tax contributions, so each dollar you invest will usually get offset by a corresponding reduction in your tax withholding.
While many people default to investing in a traditional 401(k), either because those are more common or they don't want to give up the tax benefits right now, there are actually three really good reasons why you may want to consider a Roth, instead.
Source Fool.com
