« GM Announces a 5-Year/100,000 Warranty on ALL 2007 Models | Main | Networking 101 »
Another Look at the Roth 401(k)
By JLP | September 7, 2006
I don’t have time to go into details right now, but read Trimming Your Taxes: Why Roth 401(k)s Often Beat Conventional 401(k) Plans by Jonathan Clements. It’s an interesting take on the Roth 401(k) and definitely something to think about. I’m going to go into more detail later today. Right now I have some other things to take care of.
Topics: 401(k), Retirement Planning, Roth 401(k) | 2 Comments »
September 8th, 2006 at 2:35 pm
I really like the Roth, and am lobbying our HR types to get the Roth option added to our 401K. That said, deciding whether to go Roth or not is trickier than the article suggests, particularly if you’re close to the $150K magic sliding cutoff for Roth IRA funding. Last year, I used the (normal) 401K to get under the Roth limit, and we funded both of our Roth IRAs. This year, we’ll be well above the cutoff, and if a Roth had been available, I probably would use it.
Roth 401Ks are especially good for the self-employed, particularly if they make a high income and want to maximize their retirement set-aside.
September 9th, 2006 at 12:42 pm
[...] All Financial Matters with a link to info about the Roth 401(k). [...]