Many employers offer a traditional 401(k) but you may want to consider a Roth 401(k) if it’s available.
Key Takeaways:
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Roth 401(k) contributions are made with after-tax dollars while a traditional 401(k) is pre-tax.
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The same contribution limits apply to the Roth 401(k), $18,000 annual max and $6,000 catch-up contribution for those over age 50.
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You can split your contributions between the traditional 401(k) and Roth 401(k).
- If you expect your tax rate to be higher when you pull the money out in retirement, you're better off paying taxes now and avoiding them later with a Roth 401(k).
Read more here: http://www.usnews.com/news/business/articles/2016-11-23/how-to-tell-if-a-roth-401-k-is-for-you
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