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Pretax vs. Roth Contribution

Written by The Capital Group | October 22, 2021
 


Pretax vs. Roth Contribution

Nearly 70% of 401(k) plans now offer a Roth contribution option, which makes understanding the difference between Pretax and Roth contributions an important part of retirement planning. In the video above, Tyler Stewart takes us through the main differences – from what it means for your paycheck today to what it means for your taxes in retirement – between the two contribution types.