The Capital
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The Capital

The Differences Between a Traditional and Roth 401(k)

Understanding the differences between the two retirement plans

Photo by Aaron Burden on Unsplash

A 401(k) is a tax-advantaged, defined-contribution retirement account offered by many employers in the United States to their employees. Its name comes from a section of the U.S. Internal Revenue Code. The section of the Internal Revenue Code that made the 401(k)…

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