Deciding on the right retirement account can be difficult because there are so many excellent options available. However, many retirement advisors believe that a Roth 401(k) is the best choice. This retirement plan allows employees to invest tax-free money up to specific limits.

According to MarketWatch, a website that provides business news, stock market data, and financial information, an employee can contribute up to $19,500 in 2021. By the end of the year, employees who are 50 years old or older can contribute up to $26,000.

A Roth 401(k) is different from a traditional 401(k) because it has no tax consequences now or in the future. If that were not enough, people can withdraw their contributions at any time without penalty.

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