Roth 401(k) vs. 401(k): Which Is Right for You?

The Roth 401(k) vs. 401(k) decision can mean the difference between higher taxes now or in retirement. It's your choice.

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Investing in a Roth 401(k) vs. a 401(k) all boils down to taxes. It's the norm today for working Americans to save in either type of 401(k) as pensions fade away. But 401(k)s come in two distinct flavors. And that means savers must do a tale-of-the-tape comparison of the two options: traditional vs. Roth 401(k).

Both 401(k)s are “great retirement savings vehicles,” says Nilay Gandhi, a senior wealth advisor at Vanguard.

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Contributing Writer