W3Schools

Interested in a Roth 401(k)? Here’s how they work

IRS
The new postcard-sized Form 1040.

As the name suggests, a Roth 401(k) combines features of the traditional 401(k) with those of the Roth IRA. It’s offered by employers like a regular 401(k) plan, but as with a Roth IRA, contributions are made with after-tax dollars. While you don’t get an upfront tax-deduction, the account grows tax-free, and withdrawals taken during retirement aren’t subject to federal income tax, provided you’re at least 59 1/2 and you’ve held the account for more than five years.

The Roth 401(k) can offer advantages to high-income individuals who haven’t been able to contribute to a Roth IRA because of the income restrictions.

>>> Original Source <<<

Comentários