With a Roth 401(k) you pay taxes on the money before you deposit it to the account, not when you take disbursements. Funds in traditional 401(k)s are deposited pre-tax and will be taxed when you start withdrawing money. Both have benefits depending on the account holder’s age, tax exposure and future outlook. These account types can be used simultaneously to limit tax exposure and balance risk and long- and short-term benefits. To see how much you need to invest to prepare for your retirement, use KeyBank’s savings calculator.