Roth 401(k) will become real in January 2006, MarketWatch says.
If a person can save the same dollar amount in a Roth 401(k) as they could in their traditional 401(k), then the Roth 401(k) makes sense as well. The reason? It means you can give up a tax break today for a tax break in retirement. (Because a traditional 401(k) contribution is deducted from your paycheck pretax, you can save $100 while only lowering your net income $72, assuming you are in a 28% tax bracket. Using after-tax dollars would require you to deduct the full $100 from your net.)
