© Images_of_MoneyA Roth 401k and Roth IRA sound similar, and they are. Contributions to both plans are made after taxes and earnings can be taken out tax-free after five years or at age 59 ½. The 401k version of the Roth, however, has a couple of key differences from the IRA version. The biggest difference is the contribution limit, which is much higher on the 401k.
It allows employees to save up to $16,500 per year, and for workers over 50 the ceiling is ...
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