Is a Roth 401(k) the same as just a regular Employee 401(k)???

bentonpittman · ‎June 6, 2019

macuser_22 · ‎June 6, 2019

No. A "regular" 401(k) is funded with before tax dollars and you contributions are excluded from your taxable wages, but when you take distributions you pay the tax that you don't pay now.

A 401(k) Roth (called a designated Roth) is after tax money that is included in your taxable wage that you will not pay tax again when withdrawn.

There are advantages and disadvantages to both types of plans.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

View solution in original post

macuser_22 · ‎June 6, 2019

No. A "regular" 401(k) is funded with before tax dollars and you contributions are excluded from your taxable wages, but when you take distributions you pay the tax that you don't pay now.

A 401(k) Roth (called a designated Roth) is after tax money that is included in your taxable wage that you will not pay tax again when withdrawn.

There are advantages and disadvantages to both types of plans.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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Is a Roth 401(k) the same as just a regular Employee 401(k)???