Question: what is the difference between a traditional 401k and a roth 401 k?
Answer: The basic difference between a traditional and a Roth 401(k) is when you pay the taxes. With a traditional 401(k), you make contributions with pre-tax dollars, so you get a tax break up front, helping to lower your current income tax bill. ... With a Roth 401(k), it's basically the reverse.