In this episode I talk about the Roth 401K and how using it will make you retire very wealthy. This is so important to use because it is an after-tax contribution. When you're reviewing your employer-sponsored retirement options, you might be confused by the plethora of different accounts offered by your company: There's probably a 401(k), a 403(b), or a Roth 401(k).
If you've heard of a 401(k) and a 403(b), but not a Roth 401(k), you're not alone. According to Fidelity, 75% of companies that Fidelity provides retirement services now offer a Roth 401(k) option. However, only 13.6% of those offered a Roth 401(k) actually use one. A Roth 401(k) is an employer-sponsored after-tax retirement account that has features of both a Roth IRA and a 401(k). Like a Roth IRA, contributions to a Roth 401(k) are made with income that's already been taxed, allowing investments to grow and be withdrawn in retirement without being taxed. While traditional 401(k)s reduce your taxable income because contributions are taken directly from your paycheck, Roth 401(k) contributions will not reduce your taxable income.
I have a Roth 401K that I have been contributing to for many years and it is growing. Any extra money you come across put it in the account. It's hard now but will pay off many times over.
On this podcast I cover all aspects of your growth Body Mind and wallet. If you have any topics you would like me to cover feel free to let me know.
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