The Roth 401(k) plan, as the name suggests, couples the features and benefits of a traditional 401(k) plan and a Roth IRA to provide employees with a good retirement savings plan. To understand Roth 401(k) better, one needs to have some basic knowledge of traditional 401(k) and Roth IRA.

Traditional 401(k)

Traditional 401(k) is a retirement savings plan where an employee makes tax deferred contributions to their 401(k) account. The contributions that an employee makes are tax deferred,