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A contribution-based retirement account, which combines features of the traditional Roth IRA and 401(k) plan accounts. The Roth 401(k) contains many benefits for employees, such as being able to contribute post-tax money, but many companies do not yet offer this as a retirement plan option, due to the increased amount of work it takes to maintain this plan. Companies were given the option to begin offering this plan in 2006.

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