is a roth 401 k better than a traditional 401 k 
your personal circumstances can help answer that question for many people the roth 401 k is a better deal because you only pay income taxes on your contributions this allows your earnings to grow tax free and make withdrawals without paying income taxes however if you re cash strapped now keep in mind that this option will be a heavier hit to your current annual income than a traditional 401 k contributions to a traditional 401 k are tax free but you must pay taxes on your withdrawals so if you expect to be in a lower tax bracket after retiring the immediate tax break of a traditional 401 k will likely be more useful 1 however it s difficult to predict what income tax rates will be in the future 