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Roth IRA vs. Roth 401(k): Which Is Best for You?

Both the Roth 401(k) and the Roth IRA can help you reach your retirement goals. Each has its advantages and disadvantages.

By Motley Fool Retirement Team – Updated Dec 16, 2024 at 1:02PM

Key Points

  • Roth 401(k)s offer higher limits and often employer matches; no income cap for contributions.
  • Roth IRAs allow broader investment options and no withdrawal mandates; high earners barred.
  • Both account types feature tax-free withdrawals, with individual and employer plan differences.
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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