It’s not talked about nearly as much as Roth IRAs or regular 401(k), but you can have a Roth 401(k). No, not every employer retirement plan offers it. Yes, it does have many of the same advantages as a Roth IRA. If you know what makes a Roth IRA so enticing then you can probably guess the how a Roth 401(k) works. If you guessed that it’s because your contributions are taxed when they go into your account and not when they are distributed, then you are correct. This can be very advantageous, especially if you have an understanding of tax brackets and how you most likely will end up in a higher tax bracket when you retire and begin tapping into you nest egg. Furthermore, having a Roth 401(k) could have a positive impact on any Social Security benefits you receive in the future as a Roth 401(k) distribution is not considered taxable income and thus your Social Security benefits may also not be taxable. Furthermore, a Roth 401(k) doesn’t have the income limitations that a Roth IRA has and thus, you can make contributions regardless of your income. There is one drawback, though, to a Roth 401(k) and it has to do with employer contributions. While you can have employer matching with a Roth 401(k), the money from your employer will go into a pre-tax account as your employer is most likely allowed a tax deduction for the matching contribution. This means that any matching dollars from your employer are not Roth dollars and will be taxable when you take a distribution from that account. Finally, it should be noted that you need to make sure that your employer plan offers a Roth 401(k) option, as not all plans offer it. If you find that your employer plan does allow such an account and you have questions about it, you should either speak with your plan custodian or a certified financial expert.