Q: My company recently added a Roth option to our 401k plan. We can now choose to contribute to the Roth or the traditional 401k. Some of my coworkers say the Roth is better, but I’m not sure. What do you think?
A: Not every 401k plan offers a Roth option, but if yours does, you should take a close look at it. Roth 401k plans are similar to Roth IRAs. Contributions are made with after-tax money and all future gains and withdrawals are tax-free. Roth 401k plans have several attractive benefits.