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Financial Planning > Tax Planning

How to pick the juicier 401(k) plan

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Roth 401(k)s are on the rise. According to Aon Hewitt, two in five private-sector plans offer them, with another 29% likely to add them this year. Because they are funded with after-tax dollars—just like Roth IRAs—this might not be the best benefit option for everyone. Being in a higher tax bracket later and whether you work in a high-tax state are some of the factors that should be considered when deciding if a Roth 401(k) is the best option.