The reason I love this video by Human Investing is because it simplifies a topic I initially struggled with. When I first opened my 401K, I had no clue that there was an option to contribute to a Roth 401K. Once I learned about said option, I still wasn’t sure how it worked.

Similar to a Roth IRA, a Roth 401K let’s you opt to have taxes taken out before you add them to your account. This means that you can withdraw your funds TAX FREE during retirement! This video illustrates the differences between a “Pre-Tax” and a “Roth” 401K, and highlights the unique benefits associated with each account. The video is approx. 3 minutes long and provides an stellar overview. It doesn’t address all of the nitty gritty details, such as how employer matches are taxed or the stipulations for withdrawing money, but still serves as an fantastic starting off point. Check it out!