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.

Roth’s advantages are that taxes are paid at the time the money goes in, so when the money is withdrawn it’s tax-free.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If money is withdrawn before 59 1/2, there are no penalties, compared to the 10 percent penalty fees that come from dipping into a regular 401(k) early.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).