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Understand Roth 401(k) Income Limits

Roth 401(k)s are a great savings option for those who earn too much money to contribute to a Roth IRA.

By Motley Fool Retirement Team – Updated Nov 25, 2024 at 11:55PM

Key Points

  • Roth 401(k)s have no income limits, allowing high earners to contribute regardless of salary.
  • A Roth 401(k) doesn't provide upfront tax breaks, but it offers potential tax-free withdrawals in retirement.
  • To decide between a Roth or traditional 401(k), consider your anticipated tax rate in retirement.
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