Why a Roth 401(k) Could Be Your Ticket to a Secure Retirement
Many people are familiar with employer-sponsored 401(k) plans. And if your company makes one available, you may already be on the road to building yourself a substantial retirement nest egg.
But many savers opt to put their money into a traditional 401(k). Doing so means snagging a tax break on contributions and enjoying tax-deferred investment growth. However, if your 401(k) plan comes with a Roth savings option, it could really pay to take advantage of it.
These days, a growing number of 401(k)s come with a Roth version. If you go this route, you'll forgo a tax break on the money you put in. However, investment gains in your account will be yours to enjoy tax-free, and you won't pay taxes on withdrawals during retirement. In fact, if your goal is to avoid financial stress later in life, a Roth 401(k) could be really be the right way to go.
Source Fool.com
