I recently noticed that my 401k plan through my employer says it allows for Roth contributions. I have never heard anyone talking about this before and I don't understand why anyone would do this.
I'm assuming that you would still be limited to the 18k/yr contribution limit which would mean that for higher income individuals, it would make no sense to contribute after tax dollars to this plan, correct? On the other hand, if you're allowed to put as much as you want in there on top of your normal contributions then that might make a lot of sense?
I'm assuming that you would still be limited to the 18k/yr contribution limit which would mean that for higher income individuals, it would make no sense to contribute after tax dollars to this plan, correct? On the other hand, if you're allowed to put as much as you want in there on top of your normal contributions then that might make a lot of sense?
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