Contributions to a Traditional 401(k) plan are made on a pre-tax basis, resulting in a lower tax bill, and higher take-home pay. Contributions made to a Roth 401(k) are made on an after-tax basis, which means that taxes are paid on the amount contributed in the current year. The reverse is true once you are eligible to make 401(k) withdrawals. Withdrawals from Traditional 401(k) plans are taxable, while those made from a Roth 401(k) are not.
Roth vs. Traditional IRA
How to find out if you’re eligible for the advance child tax credit
Many families will be eligible for advance child tax credit payments starting in July. Find out whether you’ll receive these payments.
You still have time to save in these accounts
If you meant to set aside more money for retirement or health expenses last year, you still have time to contribute to these accounts.
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Saving for retirement doesn’t have to be complicatedLearn More about Retirement Accounts