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A Roth 401(k) is a defined contribution plan offered by an employer that is similar to a traditional plan with one major exception.
Roth 401(k) Plan Explained
An employer-sponsored Roth 401(k) plan is similar to a traditional plan with one major exception. Contributions by employees are not tax deferred but are made with after-tax dollars. Income earned on the account from interest, dividends, or capital gains, is tax-free.
