what is a roth 401 k 
a roth 401 k is an employer sponsored retirement savings account that is funded using after tax dollars this means that income tax is paid immediately on the earnings that the employee deducts from each paycheck and deposits into the account as long as certain conditions are met that is you must be at least 59 and you must have had the account for at least five years withdrawals from the account are tax free upon retirement this type of plan is different from a traditional 401 k plan which is funded with pretax money in this case payroll deductions come out of the employee s gross income and taxes are due when the money is withdrawn from the account 1investopedia matthew collins