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Roth 401(k): Definition, Basics, and Limits

By Motley Fool Retirement Team – Updated Nov 22, 2024 at 5:22PM

Key Points

  • A Roth 401(k) allows tax-free withdrawals and no taxes on investment earnings if you wait until age 59 1/2.
  • Contributing to both Roth and traditional 401(k)s enables flexibility in managing future tax situations.
  • Roth 401(k)s are no longer subject to RMDs, enhancing their value as estate planning tools.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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