Traditional versus Roth 401k

Traditional 401(k)

• Contribute with pre-tax $
• Get tax deduction at the time of contribution
• Pay lower income-tax at the time of contribution
• Contributions are taxed when you withdraw them

Roth 401(k)

• Contribute with post-tax $
• Do not get tax-deduction at the time of contribution
• Pay regular income-tax at the time of contribution
• Contributions are tax-deferred when you withdraw them