This site provides an overview of two primary savings options - known as contribution types - that may be available to you in your 401(k) plan held through the ABA Retirement Funds Program ("Program").
Keep in mind as you learn about the options, you should review your plan's Summary Plan Description (SPD) to confirm your available options, as well as any additional contributions your employer may make on your behalf. In addition, your plan may offer regular after-tax contributions. You should review your plan's Summary Plan Description for what’s available to you.
Traditional pre-tax: Your 401(k) elective salary deferral contributions are made before they are taxed1 so you save on taxes today.
Roth after-tax: Your 401(k) elective salary deferral contributions are taxed today for tax-free1 income in retirement.
1 Refers to federal taxes and assumes any distribution is a qualified distribution. Refer to your state's tax rules, and local tax rules if applicable, to determine if additional taxes apply.