Roth 401(k)plans are similar to 401(k)plans in which two ways? (Roth 401(k)Plans)

Question

Quizplus · Accepted Answer

Roth 401(k) plans are different from traditional 401(k) plans in that employee contributions are made with after-tax dollars and therefore do not reduce taxable income in the year of contribution. However, like traditional 401(k) plans, Roth 401(k) plans offer tax-free growth and tax-free withdrawals (subject to certain conditions) in retirement. Therefore, the answer is B - employee contributions are taxed at the individual's tax rate, upon retirement employee withdrawals are not taxed.

Roth 401(k)plans Are Similar to 401(k)plans in Which Two Ways