Roth 401(k)plans differ from 401(k)plans in which two ways? (Roth 401(k)Plans)

Question

Quizplus · Accepted Answer

Roth 401(k) plans feature post-tax contributions, meaning the money you contribute is taxed at your current income tax rate. However, when you withdraw the funds in retirement, you do not have to pay taxes on either the contributions or the earnings, as long as certain conditions are met. This is the key difference from traditional 401(k) plans, where contributions are made with pre-tax dollars and withdrawals are taxed as income.

Roth 401(k)plans Differ from 401(k)plans in Which Two Ways? (Roth