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roth401k Site Admin
Joined: 25 Apr 2005 Posts: 182
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Posted: Tue Feb 28, 2006 2:33 pm Post subject: Another Retirement Savings Option: Roth 401(k) Plan - Feb 22 |
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Another Retirement Savings Option: Roth 401(k) Plan
by John E. Buckley
Economist, Division of Compensation Data Analysis and Planning, Bureau of Labor Statistics.
Telephone: (202) 691-6299; E-mail: Buckley.John@bls.gov
Bureau of Labor Statistics
Originally Posted: February 22, 2006
Employers now have a new retirement savings plan to offer their employees--the Roth 401(k) plan, which combines features of Roth IRAs and traditional 401(k) plans.
Beginning January 1, 2006, employers have a new retirement savings option to offer employees. The plan, commonly referred to as a "Roth 401(k)," is a hybrid that combines features of Roth IRA and traditional 401(k) plans but differs in important aspects. Some of the differences and similarities are outlined in the exhibit.
Employees who already have a regular 401(k) plan can participate in a Roth 401(k) if the employer offers it. However, the combined total contributions cannot exceed the Internal Revenue Service limit set for individual plans--that is, $15,000 (or $20,000 for employees aged 50 or over) in 2006. An employee who participates in both plans can designate the amount to be applied to each plan. Once a decision is made, the participant cannot switch money among the plans. (Roth 401(k) participants who change employers can roll over the proceeds into a Roth IRA.)
If an employer provides a matching contribution to a Roth 401(k), two accounts.............
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"roth 401(k)" - Google News
"roth 401(k)" - Google News
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Six Simple Ways to Retire Rich KRIS-TV, TX - Jul 7, 2008 The new Roth 401(k) also offers tax-free income in retirement. Roth IRA contribution limits are the same as for a traditional IRA: $5000 in 2008, ...
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Employers take to Roth 401(k) after slow start InvestmentNews, NY - Jun 30, 2008 By Lisa Shidler More than two years after its creation, the Roth 401(k) is finally gaining traction in company plans, such as those managed by The Hartford ...
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Commonly Asked 401(k) Plan Questions Magazine of Santa Clarita, CA - Jul 1, 2008 A Roth 401(k) is not a type of plan, but rather a type of plan contribution. If a 401(k) plan offers this feature, employees can designate some or all of ...
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Tune Out Bad Financial Advice for Summer Tune-Up Bloomberg - Jul 7, 2008 Also consider starting a Roth 401(k) account, which is funded with after-tax dollars, although retirement withdrawals aren't subject to income tax. ...
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The 401(k) Takes Care Of Business Forbes, NY - Jun 12, 2008 New Roth 401(k) feature allows for after-tax contributions: That's right. New regulations now enable small businesses to make after-tax contributions with ...
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Start Saving With A 401(k) Forbes, NY - Jun 9, 2008 Another option that can be advantageous for the younger crowd is the Roth 401(k), which is offered alongside the traditional 401(k) by a growing number of ...
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Roth can add to the confusion over 401(k)s Orlando Sentinel, FL - Jun 22, 2008 Then there's the Roth IRA and his lesser-known workplace cousin the Roth 401(k) -- you fund both with after-tax dollars, but the money is withdrawn in ...
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Financial Q&A: If a brokerage firm goes broke, will your ... Christian Science Monitor, MA - Jun 29, 2008 Q: I have the option of investing in a conventional 401(k) or a Roth 401(k). My wife also has a conventional 401(k). We both contribute the maximum to our ...
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The Quarter-Life Retirement Plan Kiplinger.com, DC - Jul 3, 2008 More employers are offering a choice between a traditional 401(k) and a Roth 401(k). In this case, go for the Roth. Your contributions with a Roth are taken ...
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Understanding Roth IRA Accounts: Financial Advisor Helps Investors ... PR Web (press release), WA - Jul 1, 2008 Although income levels may prevent opening a Roth IRA, there are a growing number of companies that offer Roth 401(k) investment plans to employees. ...
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