What Is a Roth 401(k)? Pre-Tax vs Roth 401(k)
A Roth 401(k) lets you make after-tax contributions to your workplace 401(k) and take tax-free withdrawals in retirement. It has the same high contribution limits as a regular 401(k) but no income limits — unlike a Roth IRA.
How a Roth 401(k) works
If your employer's 401(k) plan offers a Roth option, you can split your contributions between pre-tax and Roth. Roth 401(k) contributions are made with after-tax dollars — they don't reduce your current taxable income — but qualified withdrawals (after 59½ and 5 years in the plan) are tax-free. The contribution limit is the same as pre-tax 401(k): $24,500 for 2026.
Roth 401(k) vs Roth IRA
| Feature | Roth 401(k) | Roth IRA |
|---|---|---|
| 2026 limit | $24,500 | $7,500 |
| Income limits | None | Phase-out $153,000–$168,000 (single) |
| Employer match | Pre-tax (always) | No employer match |
| RMDs | None (SECURE 2.0) | None (owner's lifetime) |
Pre-tax or Roth 401(k)?
Choose pre-tax if you expect a lower tax rate in retirement (you get the deduction now at your higher current rate). Choose Roth if you expect a higher tax rate in retirement or want tax-free income in retirement for flexibility. If you're young and expect decades of growth, the Roth 401(k)'s tax-free growth can be powerful.
Does the employer match go to Roth?
Employer matching contributions are always pre-tax, even if your own contributions are Roth. This means you'll have both pre-tax and Roth money in your 401(k), and distributions will be taxed accordingly.
Frequently asked questions
Is a Roth 401(k) the same as a Roth IRA?
No. A Roth 401(k) is part of your employer's 401(k) plan with much higher limits and no income limits. A Roth IRA is an individual account with lower limits and income phase-outs.
Can my employer match Roth 401(k) contributions?
Your employer can match your Roth 401(k) contributions, but the match itself is always pre-tax — it goes into the pre-tax portion of your account, not the Roth portion.
What are the 2026 Roth 401(k) contribution limits?
$24,500 in elective deferrals, plus $8,000 catch-up at 50+, or $11,250 super catch-up at 60–63. This is the same limit as pre-tax 401(k).
Sources
Gleefund explains general retirement-account concepts and provides estimates. It does not provide financial, tax, or legal advice. See our disclaimer and methodology. Check the current IRS rules before acting.
Figures current as of 2026-09-25. Found an error? Contact us.