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Designated Roth Contribution

Contributions

An after-tax contribution made to the Roth portion of a 401(k), 403(b), or governmental 457(b) plan. Unlike pre-tax contributions, Roth contributions do not reduce your current taxable income, but qualified withdrawals in retirement—including all earnings—are completely tax-free. This can be valuable if you expect to be in a higher tax bracket in retirement.

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