Ask employer to provide a Roth 401(k) - June 25, 2005

[roth401k]

Ask employer to provide a Roth 401(k)

Posted on Sat, Jun. 25, 2005

If your idea of retirement bliss includes never paying taxes once you are basking in your easy chair, round up your colleagues at work and head to your company benefits or human resources office.

Ask your employer to consider making use of a new tax law that will let companies adjust their 401(k) plans so they act like Roth IRAs. If they make the change, you may contribute to your 401(k) as you do now -- making contributions from every paycheck and investing in the usual array of mutual funds.

But when you retire, the results will be very different from the 401(k) you have come to know: Anything you take out of your retirement savings in a Roth 401(k) will be yours free and clear.

So, if you retire with $500,000 in the retirement plan, you will have the comfort of knowing every penny will be available. Uncle Sam won't touch a dime.

If that sounds good, you might have to speak up. Only one-third...................

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