Video: What is an IRA? Traditional IRA vs Roth IRA vs 401K - Pros and Cons and Tax Benefits

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The Roth 401(k) - New Kid In Town

A traditional 401k plan is an arrangement under tax law by which an employer can deduct pre-tax money from your paycheck and the employee can invest it. In a traditional 401k this money is nontaxable until you withdraw it, at which time you will likely be in a lower tax bracket.

Those who are looking into retirement savings plans should also take not of the Roth 401k that became effective in 2006. The Roth 401k is a hybrid between the traditional 401k and the Roth IRA, and was legislated ........Click here to read more.....