Of all the tax advantaged ways to save for retirement , the Roth IRA is one of the best. Tax-free savings through your employerAnother option for tax-free retirement savings is a Roth 401(k)Three quarters of employers that offer a 401(k) plan allow employees to make Roth contributions, according to the Plan Sponsor Council of America. The federal contribution limits to a Roth 401(k) are the same as a traditional 401(k) -- $19,500 for those under 50. Also, unlike with a Roth IRA, federal rules require that you start taking distributions from a Roth 401(k) no later than age 72. But that shouldn't be an issue if you decide to roll your Roth 401(k) over into a Roth IRA when you leave the company.

Source: CNN July 09, 2021 14:15 UTC