What is a 401k Roth

A Roth 401k is a hybrid between a Roth IRA and a conventional 401k. It has the same limits and vesting rules as a 401k, however contributions are not taxable, but distributions including the growth in the investments are tax free. Whether to fund a 401k or a Roth 401k will depend on many factors and only a retirement planning software that does an income tax analysis like ExecPlan Express, will allow someone to look at both scenarios to see which best suits their personal finances.