Roth 401(k)s Just Got a Lot More Attractive. Here's Why.
It's important to build up savings for retirement. And the sooner you do, the better.
Once your career wraps up, you might struggle immensely if you're forced to retire on Social Security alone. And so the more money you have in savings, the more financial flexibility you'll get to enjoy later in life.
Now, if you want a retirement plan that offers you the option to make larger annual contributions, you may want to favor a Roth 401(k) over a Roth IRA. Both plans allow for tax-free gains on invested funds and tax-free withdrawals. But Roth 401(k)s currently max out at $22,500 for savers under 50 and $30,000 for those 50 and over. Roth IRAs, on the other hand, max out at $6,500 for younger savers and $7,500 for those 50 and over.
Source Fool.com
