How To Decide Between 401K And Roth 401 K? 
The decision is based on when you want your money taxed . In a standard 401 -LRB- k -RRB- plan the money is deducted from payroll and not reported as income . The benefits when withdrawn are fully taxable as ordinary income . With a Roth 401 -LRB- k -RRB- the benefit is paid with after-tax dollars , however , the entire benefit -LRB- principle and earnings -RRB- is free of income tax if the plan has been in force 5 years and you are more than 59.5 years old , disabled or using the money for a first time home purchase . 