What are the differences between a Roth and post-tax 401(k) and which one would be more beneficial for my retirement savings?

Answer 1

The main difference between a Roth and post-tax 401(k) is how they are taxed. Contributions to a Roth 401(k) are made with after-tax money, meaning withdrawals in retirement are tax-free. Post-tax 401(k) contributions are made with pre-tax money, so withdrawals are taxed as income in retirement. The choice between the two depends on your current tax situation and future tax expectations. If you expect to be in a higher tax bracket in retirement, a Roth 401(k) may be more beneficial. If you expect to be in a lower tax bracket, a post-tax 401(k) may be better.