How is a Roth 401(k) different?
- What are defined contribution plans?
- How do defined contribution plans work?
- How does the money get invested?
- What tax benefits do 401(k)s offer?
- Do I have to contribute to my plan?
- Why is a 401(k) such a good deal?
- When do I pay tax on a 401(k)?
- How is a Roth 401(k) different?
- What is a matching contribution?
- How does vesting work exactly?
- How much should I contribute to my plan?
- What if I can't invest the maximum right now?
- What if I need the money before I retire?
- What if I leave my job?
Roth versions of 401(k)s don't give you an immediate tax break: You have to pay tax on any income you contribute to the plan. But you won't have to pay tax on withdrawals in retirement, so your money can compound tax-free ad infinitum.
