| Employers now have the option of offering a Roth 401k
retirement savings plan. In a Roth 401k plan
employee contributions are taxed in the year they are
made. (In a regular 401k, contributions are NOT
taxed ). However, in a Roth 401k plan retirement
withdrawals have NO income tax due. (In a regular
401k plan withdrawals during retirement are subject to
income tax)
For a Roth 401k plan, employer matches
are put into a separate account which IS subject to income
tax when you withdrawn
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