Nearly all 401(k) plans now allow for workers to save money in Roth accounts, after legislative changes led adoption to jump significantly in recent years.

A Roth account is funded with after-tax money. Savers pay income tax up front on their 401(k) contributions but don't pay tax when they withdraw money later, with some exceptions .

Financial planners generally recommend Roth savings for workers who are likely in a lower tax bracket now than when they retire, like young people who are early in their careers . A Roth 401(k) can be particularly beneficial, because it lets workers put aside more per year than a Roth IRA ( $24,500 compared with $7,500 , respectively, in 2026), and doesn't have the income restrictions that come with Roth IRA contributions.

Nearly all empl

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