A 401k is not an investment. It is a tax rule.

A 401k is not an investment.
It is a tax rule.

Specifically, Section 401(k) of the IRS code.
It just tells the government how your investments are taxed.

Roth 401k — you pay taxes now, and it grows tax-free.
Traditional 401k — you defer taxes until later.

Same account.
Different tax timing.

Knowing the difference
can save you thousands.