Fresh Ideas for Retiring Rich - September 21, 2005

[roth401k]

Fresh Ideas for Retiring Rich

September 21, 2005

These seven bold strategies can help you supercharge your savings and realize your dreams.

By Mary Beth Franklin

Excerpt:

Beginning in January, employers may offer a new retirement-savings account, the Roth 401(k). Like the more-familiar Roth IRA, it provides no up-front tax deduction, so your contributions won't reduce your current taxable income. But all the money you withdraw in retirement -- both contributions and earnings -- is tax-free as long as the funds have been in the account for at least five years and the account owner is at least 59½ years old. That means every dime will be yours to spend at a time when you may need the money most, unhampered by taxes that whittle away at most other retirement savings.

The Roth 401(k) offers two big pluses over the Roth IRA:

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