401K Roth IRA Confusion
I was trying to figure out the difference between a Roth 401k and a Roth IRA the other day. I was getting really confused about what they were as I thought they were the same thing, just with interchangeable words of 401k and IRA. Boy, was I wrong!
I wanted to share that I finally have it figured out that the 401K version of the Roth is something that is offered by employers to their employees. I can’t get and fund a Roth 401k by myself, however I can open a Roth IRA at my bank. I’m still not quite sure about all of the ins and outs of the particular rules of them, however I do know that I can take a Roth 401K and roll it over into a Roth IRA at some point.
Both plans have certain rules that apply to them regarding the contributions that are allowed each year. They both have age requirements and things like that relating to when you can take the funds out. I really found a lot more great information about the Roth 401K plans that really helped me understand the basics. I hope it helps you too!