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Know the Rules for Roth 401(k) Rollovers

You may be less sure, though, of your options when you leave an employer with whom you hold a Roth 401(k), the newer and less prevalent cousin of the traditional 401(k). The main difference between the traditional 401(k) and the Roth 401(k) is that the former is funded with pretax dollars, while Roth contributions are in post-tax dollars so there is no tax hit from a qualified withdrawal made in the future. If your job is at stake or you are considering a career move, here are your options regarding your Roth 401(k) account when changing employers.

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