With a Roth 401(k), you'll pay taxes on your contributions now, but your withdrawals in retirement will be tax-free.
Young workers typically have fewer family obligations, like children or aging parents to care for, so paying more in taxes now often makes sense, even if you’re on a tight budget.
The amount you should contribute to your 401(k) depends on your individual retirement goals, existing resources, lifestyle, and family decisions. A common rule of thumb is to set aside at least 10% of your gross earnings as a start.
Most employees contributing to a 401(k) typically contribute a certain percentage of their salary up to the annual maximum allowed.