Roth Option

See: Roth IRA. See: Roth 401(k).

For any tax-incentivized retirement program, there is a basic question: give the tax incentives now...or give them later, when the person retires?

The Roth option goes with the second version. Any retirement vehicle (IRA, 401(k), etc.) that uses the Roth option involves contributions of after-tax dollars. Then, at retirement time, withdrawals come tax-free.