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Fatherly

401k vs. Roth 401k: What’s the Difference?

By Lauren Steele

There are three types of retirement accounts: IRA, 401K, and 403B — but 403B accounts are a type that act as a form of insurance for union workers. That’s a special case and one best addressed by union reps. That leaves an IRA or 401K, which now both come with portfolio options to be “Roth” accounts. “Most of us are looking at a 401K from an employer or an IRA that you can have from anyone,” says Dan Egan, Director of Behavioral Finance and Investments at Betterment.“They both come with the option to be a traditional or a Roth portfolio, which basically means taxes now or taxes later.”

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This article originally published November 17th, 2017 on Fatherly

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