A Roth 401(k) works just like a traditional 401(k) with one big difference — contributions are made with after-tax dollars.They were introduced in 2001, making Roth 401(k)s a relatively new option for retirement savings. It combines the best features of a 401(k) and a Roth IRA: High contribution limits with no income restrictions on who can contribute. And, like a traditional 401(k), you can borrow money from your Roth 401(k).
I have recently been made aware of a Roth 401(k) and was wondering what the difference is between a traditional 401(k) and a Roth 401(k)?