How the Roth 401k Option Increases Retirement Benefits

[roth401k]

How the Roth 401k Option Increases Retirement Benefits (and effectively increases the contribution limit from $20,000 to $30,769)

Considering the increases in the 401(k) maximum contribution and defined benefit pension benefit limits for 2006, a business owner who is old enough and earns adequate taxable earned income can contribute and deduct up to $189,600 into a combination of a defined benefit pension plan and profit sharing plan with a 401(k) feature. Adding and contributing to a Roth 401(k) option, in lieu of the pre-tax 401(k), lowers the deductible contribution to.......

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