401(k) PlansEmployee benefitsRetirement Planning

Should You Use a Roth 401(k) or a Traditional 401(k)?

By April 27, 2016April 14th, 2020No Comments

This article was originally published on U.S. News by Kristin McKenna, Wealth Advisor at Darrow Wealth Management.

As more employers are making the Roth 401(k) available to employees, many investors wonder if they should contribute to the after-tax option and how to best allocate their contributions.

Traditional 401(k) plans aren’t the only type of retirement plan that can have a Roth component; 403(b) and governmental 457(b) plans can also have a separate Roth account. For simplicity, we’ll only use the traditional 401(k) plan in this comparison, although the general guidance is largely consistent across 403(b) and 457(b) plan types also. Continue reading…

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