Part 1/4:
Understanding 401(k)s and Roth Options
In a recent discussion, Gaby Lapera and Dan Caplinger delved into the nuances of 401(k) retirement accounts, particularly the differences between traditional and Roth 401(k)s.
Lapera began by clarifying the structure of 401(k)s, which are retirement savings accounts provided by employers. Importantly, she pointed out that employers often offer matching contributions, where they match a portion of the employee’s contributions up to a specified limit. This employer match serves as an incentive for employees to participate in the savings plan, making 401(k)s a beneficial tool for retirement savings.