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) plan 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.
