What a 401k Really Is Explained in Simple Terms | 401k vs Roth vs Traditional IRA
17 Sept 2025 · 0 min
0:23
A short explainer by Craig Wear, CFP® clarifying that a 401(k) is a tax label (derived from section 401(k) of the IRS code), not an investment vehicle itself. The speaker contrasts Roth 401(k) (pay taxes now, grows tax-free) with Traditional 401(k) (taxes deferred until withdrawal) and emphasizes that understanding tax timing can save thousands of dollars.
