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401(k) takes tax cues from Roth accounts - Mar. 20, 2005

 
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PostPosted: Tue May 03, 2005 2:14 am    Post subject: 401(k) takes tax cues from Roth accounts - Mar. 20, 2005 Reply with quote

401(k) takes tax cues from Roth accounts

Mar. 20, 2005 12:00 AM

No workplace retirement plan is perfect. But some 401(k) programs will get a makeover next year that will remove a big wart.

Up until now, a main blemish for 401(k) plans has been a hefty tax bite on withdrawals. When people pull money out of these accounts, they must pay taxes as ordinary income, not at the lower capital-gains rates that otherwise would apply to long-term holdings.

Granted, 401(k) plans still have many benefits that make them attractive despite this imperfection:.........

ENTIRE ARTICLE HERE
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