It's my pleasure to welcome you here at the Clark Howard Show where it's about you learning

ways to save more and spend less and don't let anyone ever rip you off.

So you know how much I'm in to trying to get you to save money for your future.

And we've got to talk about that, about where you're putting your savings for the future.

So today, probably somewhere around two thirds or three quarters of employers offer a Roth 401K

option with their 401K.

You know, there's both the traditional 401K that gives you a current tax deal.

And then all the money grows in the account tax sheltered.

And then when you retire, everything you contributed, everything you earned is taxed.

The Roth 401K works the opposite.

And the way it works is you get no upfront tax deductions after tax dollars going that

Roth 401K.

And then you earn money all through the years when you retire, all the money in that Roth

401K is yours tax-free.

It is a 401K equivalent of my obsession with Roth IRAs.

But I want to tell you my obsession is even stronger now for Roth options versus doing

traditional IRA or traditional 401K.

And we have a ticking time bomb with the budget deficits that we have accumulated in the

United States that have gone absolutely berserk because of the spending because of coronavirus.

The spending because of coronavirus has been necessary to prevent another great depression.

But it's a bill that's going to have be due and have to be paid.

Tax rates now on individual income are unusually low by historical numbers.

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