What Is a Roth 401(k)?
A Roth 401(k) is a type of employer retirement plan contribution made with after-tax money. Contributions do not lower taxable income today, but qualified withdrawals in retirement — including earnings — are tax-free. It shares the same employee contribution limit as a traditional 401(k).
Roth vs. Traditional
Traditional contributions reduce taxes now and are taxed when withdrawn; Roth contributions are taxed now and withdrawn tax-free if rules are met. Which is better depends partly on today’s tax rate versus the expected rate in retirement.
Qualified Withdrawals
Generally require age 59½ and at least five years since the first Roth contribution to the plan.
🧮 Calculate It Yourself
Put Roth 401(k) into practice with these free calculators — no sign-up, nothing stored.
🔗 Related Terms
More Retirement & Savings Terms
📖 Browse all glossary terms or explore all free calculators.
Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.