Similar benefits are offered through Roth IRAs, but with an important distinction. “Unlike Roth IRAs, Roth 401(k)s don’t have an income limit,” says Nick Holeman, a certified financial planner at Betterment for Business, a 401(k) administrator. What’s more, workers can contribute more to a Roth 401(k) than a Roth IRA, which caps annual contributions at $5,500 for younger workers and $6,500 for those age 50 and older.
US News & World Report
5 Benefits of a 401(k) Plan You Haven’t Considered
By Maryalene LaPonsie