A Roth 401(k) is an employer sponsored retirement plan that makes it easy for employees to save after-tax dollars for retirement through payroll contributions. Roth is well-suited for people anticipating being in a higher tax bracket during retirement.

Key Benefits:

  • Contributions are not tax deductible
  • Qualified distributions are tax-free
  • No income limitations like Roth IRAs
  • Additional catch-up contributions can be made if older than age 50

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