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Gaby Lapera: One last question about IRAs. This is actually about 401(k)s. I know that
you can now have a Roth 401(k) and a traditional 401(k). Is that correct?
Dan Caplinger: That's right. If your employer gives you the option -- with a 401(k), it's
always up to the employer. Not all 401(k)s have a Roth option with them, but if your
employer has chosen it, then you have access to it.
Lapera: Right. Just so our listeners know, a 401(k) is a retirement account that's been
set up by your employer. They often provide matches. Your employer often matches the amount
that you put in up to a certain amount. If you have a 401(k) available to you, I strongly
advise you to put money into it. Caplinger: Agreed.
Lapera: Thank you very much for joining us. Do you have any last thoughts about IRAs or
retirement or anything? Caterpillars? Whatever you'd like to tell me about.
Caplinger: I'm not even going to try to struggle with a retirement-based caterpillar analogy.
Sometimes it does feel like your retirement savings just inches forward bit by bit. But,
even if you can just put aside a little bit in an IRA, that tax break will be much more
valuable than you can possibly imagine. You'll be thanking your young self that you did things
early on when it would do you the most good.