The Roth 401(k) and Roth IRA are retirement vehicles that allow you to invest after-tax dollars. A Roth 401(k) is offered through your employer, and a Roth IRA is set up individually.

Roth IRA vs 401(k): Investment Options With a Roth IRA, you’re in full control of your investments. You can manage the account or set up a robo-advisor account that helps you choose your asset ...

RMDs: Beginning at age73 (or 75 if you were born in 1960 or later), you must begin taking RMDs from your 401 (k), even if you ...

Another benefit of a Roth 401(k) vs. IRA is that you can generally contribute more to your account. With a Roth 401(k), you can contribute up to $23,500 ($31,000 if you are 50-59 or 64+) in 2025.

Roth 401(k) The Roth 401(k) has only been available since 2006. Modeled after the Roth IRA, the Roth 401(k) provides investors with an opportunity to save retirement funds in a tax-advantaged account.

Both the Roth 401(k) and the Roth IRA can help you reach your retirement goals. Each has its advantages and disadvantages.

If your employer does not offer a 401(k), then your best option is a Roth IRA. “The Roth IRA will give you the same tax benefits on your growth as the Roth 401(k),” Meyer said.

Unlike a traditional 401(k) or IRA, where withdrawals are taxed as ordinary income, Roth IRAs provide tax-free withdrawals in retirement, provided you meet the five-year rule and are over 59½.

Roth 401(k) vs. Roth IRA: An Overview . Both Roth 401(k)s and Roth individual retirement accounts (Roth IRAs) offer you the ability to save and generate tax-free wealth in retirement.

Roth vs. Traditional, 401(k) vs. IRA: The Best Account To Use at Every Age December 14, 2024 — 07:02 am EST Written by Gabrielle Olya for GOBankingRates -> ...

2024 Roth IRA vs. 401(k) at a glance. ROTH IRA 401(K) Contribution limits. The lesser or $7,000 ($8,000 if you’re 50 or older) or your taxable compensation for the year.