Retirement Contributions Hit All-Time High, Fidelity Says

“More people are putting more money away, which is great, but I think a lot of them are putting it in the wrong place, in a 401(k) rather than a Roth,” said CPA and retirement expert Ed Slott. While 401(k)s allow workers to contribute pre-tax income, the funds are subject to taxation when withdrawn; Roth funds are taxed beforehand. Savers who contribute to a 401(k) “are building up a future tax bill in retirement,” he said.