THE TAX ADVISOR: A New Era in Retirement Planning - Dec. 8

[roth401k]

THE TAX ADVISOR: A New Era in Retirement Planning

The Roth 401(k) is a very sharp tool, especially for business-owning clients

By Christopher G. Laucks

There were more than 400 new tax rules in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), and most went into effect years ago. But the time is finally arriving for one provision that will substantially alter the retirement plan market. It’s the Roth 401(k), and after a sustained period in which Americans have accumulated trillions of dollars in retirement assets through traditional 401(k) plans that will inevitably be taxed, the Roth option, which will be available January 1, 2006, opens the door to tax-free retirement income.


While the Roth 401(k) will hold appeal for millions of investors, perhaps no group will be more interested than high-income earners and proprietors of owner-only businesses. In addition.........

ENTIRE ARTICLE HERE