If you're looking for a strategy to slash your tax bill in retirement, your employer just might have the answer.
You're probably familiar with the traditional 401(k) — the workplace retirement savings plan where you can stash pretax dollars and have them accumulate on a tax-deferred basis.
What you may not know is that many companies are now offering Roth 401(k) option as well.
You can stash after-tax dollars in these accounts, have them accumulate free of taxes and take tax-free withdrawals in retirement, provided you meet a set of conditions.
Employers seem to be taking a shine to these tax-free retirement savings accounts. Close to 85 percent of the 106 employers polled by Callan said that they offered Roth 401(k) accounts in 2018.