Does A Roth 401(k) Fit Your Future? - July 18, 2005

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Does A Roth 401(k) Fit Your Future?
July 18, 2005

Investing aftertax dollars makes good sense -- if you can afford to leave them alone.

New Year's Eve revelers won't be thinking about their 401(k) plans on Dec. 31. But at the stroke of midnight comes a new option: the Roth 401(k). What sets it apart from traditional 401(k) plans is the way participants are taxed. You make your contributions with aftertax dollars, but "when you withdraw money from a Roth 401(k), it comes out tax free," says Robert Reby, a certified financial planner in Danbury, Conn. Here's a look at the issues surrounding the Roth 401(k) -- and.....

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