Compare the Roth 401(k) to a Traditional 401(k)

There are certain differences between a Roth 401K and a regular 401K. With a Roth 401K, taxes are paid upfront i.e., your income tax deductions are already made and then you go ahead and make a contribution to your 401K, which grows with time tax-free and then accumulates over time and can be withdrawn from once you’ve reached retirement age or after. With a regular 401K, your contributions are made from salary that has not been taxed yet. And while you don’t pay any taxes while it grows, you do have to pay a tax similar to income tax when you withdraw the amount post-retirement.