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Traditional 401(k) vs. Roth 401(k): What's Best for You?

As more employers offer both retirement plans, it's important for employees to know the difference.

By Motley Fool Retirement Team – Updated Nov 25, 2024 at 7:14 PM

Key Points

  • Roth 401(k) contributions are taxed in the current year, while traditional 401(k) contributions are taxed upon withdrawal.
  • Both account types penalize early withdrawals before age 59 1/2.
  • Roth 401(k)s no longer have dequired minimum distributions.
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