Roth IRAs & the TSP - August 2, 2005

[roth401k]

Roth IRAs & the TSP
Aug. 2, 2005


Federal-military investors, like lots of us in the private sector, were thrilled to learn that beginning next January employers would have the option of offering Roth IRAs as part of their 401(k) plan.

Congress authorized the optional Roth IRA setup for 401(k) plans in 2001, but the law isn't due to take effect until January, 2006. Now Congress is seriously considering repealing that option before it takes effect.

Whether that happens remains to be seen. But it is possible...

Unlike tax-deferred IRAs, the Roth is funded by after-tax money. So when you cash in your Roth IRA the entire amount is tax-free.

What's not to like?.......


ENTIRE ARTICLE HERE