A Roth 401k allows you to take tax free distributions from employer sponsored retirement plans. It combines features of a traditional 401k with those of a Roth IRA. Specifically, the Roth 401k allows workers to contribute via payroll deduction just like a traditional 401k plan.

However, these contributions are made after tax just like a Roth IRA, and so participants can withdraw their money free of taxes and fees after they turn 59 ½. To set up a Roth 401k, you should first confirm if your employer offers this option and request information on each of the employer sponsored retirement plans available to you. Collect all of the paperwork necessary to begin participation in the plan, and review your budget and determine your spending needs and how much you can afford to put into savings each month.

• The Roth 401k: What is it, and should I use it?
• The Roth 401k - Most Should Partake in it!
• Putting Money Away for Retirement in a Roth 401(k)
• 401k Retirement Plans Increase According To Recent Study
• 401k Plan of Workers Unaffected By Economic Downturn
• Lower Taxes With Roth 401k
• Roth 401k Saves on Taxes
• Earners Of ‘Too Much Money’ Can Also Benefit From The Roth IRA
• Benefits of a Roth 401k
• Roth 401k FAQs

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