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What's a Roth 401(k)?


LPL Financial. and its representatives do not provide legal or tax advice. We encourage you to consult a legal or tax advisor regarding any legal or tax information as it relates to your personal circumstances.

Contributions to a traditional 401(k) may be tax-deductible but deductibility depends on your income and the earnings grow tax-deferred until withdrawn.  Withdrawals prior to 59 ½ may be subject to a 10% federal income tax penalty and state income taxes (if applicable).  Qualified earnings withdrawals from a Roth 401(k) taken during retirement will not be subject to income tax, provided you’re at least 59 ½ and you’ve held the account for five years or more.  

Roth 401(k) employer matches (if applicable) will still be made with pre-tax dollars, and the match will accumulate in a separate account that will be taxed as ordinary income at withdrawal.  

Gabe Martin is a registered representative of LPL Financial and investment advisory services offered through LPL Financial., a broker-dealer (member SIPC) and registered investment advisor. Insurance offered through LPL Financial affiliates and other fine companies.