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401(K), ROTH 401(K), WHAT THE HEY?
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401(K), ROTH 401(K), WHAT THE HEY?
Confused about how investment accounts are taxed? I don't blame you -- the rules get very complex. So read the fine print!
(For IRA rules visit: www.smartmoney.com/retirement/ira/index.cfm?story=supertable )Max. annual Income Employer Withdrawals
Account Contributions contribution limits match at retirement
401(k) Made with pre-tax dollars $15,500* No Yes Taxed
Roth 401(k) Made with after-tax dollars $15,500* No Yes** Not taxed
Taxable account Made with after-tax dollars No limit No No Taxed
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