Roth 401(k)s and Roth IRAs are great investment vehicles to make after-tax contributions in exchange for tax-free growth and tax-free distributions in retirement, but did you know there are multiple differences between the two account types? For instance, contributions limits are over three times higher for Roth 401(k)s than they are for Roth IRAs. Additionally, Roth 401(k)s do not have income limitations for contributions that restrict the use of Roth IRAs. However, Roth 401(k)s have required minimum distributions, while Roth IRAs do not.
At Brandywine Oak, we understand the intricacies of different account types so that we can recommend the best choices for our clients. To learn more about the differences, please read https://lnkd.in/gDgTiQG.