8 What is a key difference between a Roth IRA and a traditional 401(k)? S, Bailey could diversify 75 shares during the 90-day period Withdrawals from Roth IRAs are tax-free in retirement, whereas withdrawals from traditional 401(k)s are subject to income tax. 4 O Roth IRAs are primarily used for short-term savings, while 401(k)s are designed for long-term retirement planning. O Contributions to a Roth IRA are made with pre-tax dollars, while traditional 401(k) contributions are made with after-tax dollars. O Roth IRAs have no contribution limits, while traditional 401(k)s have annual limits. 5 pts