Roth IRAs have been around for nearly 20 years, but the addition of a similar Roth option for employer 401(k) retirement plans is much more recent.
 
In this installment of Industry Focus, Motley Fool investment planning analyst Gaby Lapera and Director of Investment Planning Dan Caplinger discuss the Roth 401(k) option and whether it makes sense for you to take advantage of it. As Dan and Gaby discuss in this clip, it's up to your employer whether you have a Roth 401(k) option available, but if you do, it can be a good way to take advantage of tax-free opportunities that Roth accounts allow. Dan and Gaby conclude with some basic tips for saving for retirement.

A transcript follows the video.

This podcast was recorded on June 6, 2016. 

Gaby Lapera: One last question about IRAs. This is actually about 401(k)s. I know that you can now have a Roth 401(k) and a traditional 401(k). Is that correct?

Dan Caplinger: That's right. If your employer gives you the option -- with a 401(k), it's always up to the employer. Not all 401(k)s have a Roth option with them, but if your employer has chosen it, then you have access to it.

Lapera: Right. Just so our listeners know, a 401(k) is a retirement account that's been set up by your employer. They often provide matches. Your employer often matches the amount that you put in, up to a certain amount. If you have a 401(k) available to you, I strongly advise you to put money into it.

Caplinger: Agreed.

Lapera: Thank you very much for joining us. Do you have any last thoughts about IRAs or retirement or anything? Caterpillars? Whatever you'd like to tell me about.

Caplinger: I'm not even going to try to struggle with a retirement-based caterpillar analogy. Sometimes it does feel like your retirement savings just inches forward bit by bit. But, even if you can just put aside a little bit in an IRA, that tax break will be much more valuable than you can possibly imagine. You'll be thanking your young self that you did things early on when it would do you the most good.

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