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Nearly all 401(k) plans now allow for workers to save money<\/a> in Roth accounts, after legislative changes<\/a> led adoption to jump significantly in recent years. <\/p>\n A Roth account<\/a> is funded with after-tax money. Savers pay income tax up front on their 401(k)<\/a> contributions but don\u2019t pay tax when they withdraw money later, with some exceptions<\/a>.<\/p>\n Financial planners generally recommend Roth savings for workers who are likely in a lower tax bracket now than when they retire, like young people who are early in their careers<\/a>. A Roth 401(k) can be particularly beneficial, because it lets workers put aside more per year than a Roth IRA ($24,500<\/a> compared with $7,500<\/a>, respectively, in 2026), and doesn\u2019t have the income restrictions<\/a> that come with Roth IRA contributions.<\/p>\n Nearly all employers offering a 401(k) plan now allow workers to contribute to Roth 401(k) accounts: About 96% of plans permitted Roth savings in 2024, according to a recent report by the Plan Sponsor Council of America, a trade group representing employers with workplace retirement plans.<\/p>\n