Tag

retirement savings Archives - Sharkey, Howes & Javer

Retirement Savings 101: What’s the Difference between a Roth 401(k) and a Traditional 401(k)?

By | Investing, SH&J Blog | No Comments

Did you know many employers offer a traditional 401(k) and a Roth 401(k)? Learn the difference between the two to see what’s right for you.

Last week we covered the difference between Roth and Traditional IRAs. This week we look at the differences between Roth and Traditional 401(k)s.

Let’s start by defining the 401(k)…

401(k)s are retirement savings plans sponsored by an employer. Employees can defer all or part of their paycheck to the plan, as long as you are within the IRS limits. You can think of it as a deferred salary. Many companies will also match contributions to the plan.

Read More