Roth 401(k)

Investing

A Roth 401(k) is an employer plan option allowing after-tax contributions that grow tax-free and qualify for tax-free withdrawals in retirement. Same $24,000 employee limit as traditional 401(k); employer match goes to a parallel pre-tax bucket. The Roth 401(k) is excellent for high-income earners who want Roth treatment but exceed the Roth IRA income limits. No income limit on Roth 401(k) contributions. The Secure Act 2.0 (2022) eliminated required RMDs from Roth 401(k)s starting 2024 — a major improvement. Rolling a Roth 401(k) into a Roth IRA at job change preserves the tax-free treatment.