Roth 401(k), Roth IRA, What Is the Difference? Aug. 8, 2005

[roth401k]

Roth 401(k), Roth IRA, What Is the Difference?

Char De Coster - cdecoster@natptax.com
August 8, 2005

Many people have heard of Roth IRA’s, but now there’s a new “Roth” in town -- the Roth 401(k). Since the majority of us are not financial gurus schooled in the ins and outs of savings plans, this may be a bit confusing. Roth IRA’s and Roth 401(k)’s – what are the differences? And more importantly, how can you use them to maximize the benefits?

First, and most importantly, if eligible and able, taxpayers can have both a Roth IRA and a Roth 401(k) at the same time. For those who want to save after-tax money and can afford to do so, the Roth 401(k) is a much quicker way to save than the Roth IRA, but the best advice may be to maximize both. ........


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