A Roth 401(k) is a retirement savings plan set up by an employer for qualified employees. Contributions are deducted from an employee’s check post-tax, meaning after federal and state taxes have been taken out. In some plans, the employer may also contribute by matching up to a certain percent of the employee’s contribution. The maximum contribution an employee under 50 can make in 2016 is $18,000. If the employee is over 50 they may make an additional catch up contribution of $6,000.
A Roth IRA in an individual retirement account, not setup through an employer. It allows a person to set aside post-tax income up to a specified amount each year. Learn more about Roth IRA contribution limits from the IRS.Updated September 26, 2017