What Is Roth IRA 401K? 
Roth IRA and a defined contribution plan formed by your employer under section 401 -LRB- k -RRB- are both retirement plans but are quite different . The Roth IRA is your individual plan funded with after-tax dollars while the employer sponsored 401 -LRB- k -RRB- is your employers planyou have access to your contributions and eventually to your employers contributions after a period of time . Your contributions are made with before tax dollars . The 401 -LRB- k -RRB- benefits in retirement after age 59.5 are fully taxed as ordinary income while the income from the Roth IRA is not taxed at all . 