Gina Hacker, AP
In this March 11, 2011 photo provided by Gina Hacker, Brett Hacker, a photographer for a TV station in Kansas City, Mo., looks over his 401(k) statements. Consumers will soon be able to switch from a 401(k) to a Roth 401(k) if they want due to the American Taxpayer Relief Act.

Thanks to the American Taxpayer Relief Act, consumers will soon be able to switch over from a traditional 401(k) to a Roth 401(k) if they want, according to Business Insider.

During the past 10 years, tax laws didn’t allow savers who were younger than 59 1/2 to switch accounts. With the new act, the government plans to collect revenue when workers convert to a different account.

It’s a personal choice of which type of savings to use, as both traditional 401(k)s and Roth 401(k)s have good and bad aspects.

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Roth’s advantages are that taxes are paid at the time the money goes in, so when the money is withdrawn it’s tax-free. If the consumer has a few decades to save, Business Insider says a Roth is the best option as far as taxes go.

If money is withdrawn before 59 1/2, there are no penalties, compared to the 10 percent penalty fees that come from dipping into a regular 401(k) early.

Roths have income requirements. Those who expect to be a lower tax bracket when retiring could fare better in a regular 401(k).