I am trying to plan my 401(k) but I have no idea what "contributing funds on a post-tax basis means". Does anyone have a clearer explanation so I can make a well-informed choice?
In layman's terms, the Roth 401(k) offers no immediate tax break. However, once the money is in your retirement account, it will grow on a tax-free basis. You will be able to take penalty-free withdrawals at 59 1/2 and RMDs will begin at the age of 72.4 However, your Roth 401(k) withdrawals will be tax-free.