Uncle Sam to launch new Roth 401(k)s - July 04, 2005

[roth401k]

Uncle Sam to launch new Roth 401(k)s

Financial Independence
FLINT
THE FLINT JOURNAL FIRST EDITION
Monday, July 04, 2005
By Todd Seibt
tseibt@flintjournal.com • 810.766.6315

Many people are already familiar with the advantages of the Roth IRA, which allows after-tax contributions to a retirement fund, which then grows tax-free, with no taxes to be paid on withdrawals.

The Roth IRA also offers other desirable benefits over a standard IRA or even the 401(k) plans offered by many employers.

And as of Jan. 1, Uncle Sam will be adding Roth 401(k)s to the alphabet menu of investment options available to American businesses and workers - but many folks don't know or don't understand how the Roth 401(k) could or would fit into their financial schemes and dreams.

Stephen Yeager, a senior vice president with SYM Financial Advisors in Warsaw, Ind., volunteered some answers.

Q: What is a Roth 401(k)?

A: A Roth 401(k) operates similar to a Roth IRA in that it allows............

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