With access to a Roth 401(k) becoming more and more common, I wanted to break down the differences between a Traditional vs Roth 401(k). Including the advantages of each and how to decide which 401(k) plan to choose.
I’m currently considering a Roth 401(k) myself and was surprised by how much nuance there is in making the decision between the common two 401(k) options.
Yes, a lot of things are the same (such as contribution limits). Though, there are some major differences (like when your money is taxed) and minor ones as well (for example, the withdrawal rules).
We’ll get into all of that below to help you easily make an informed decision on which 401(k) type is right for you.[Read more…] about Traditional vs Roth 401(k): What You Need to Know