The Roth 401(k), to be introduced Jan. 1.... August 7, 2005

[roth401k]

The Roth 401(k), to be introduced Jan. 1, may be the best option yet for retirement savers. Or maybe not. Read on.

Frank Bilovsky - fbilov@democratandchronicle.com
Staff writer

August 7, 2005

Survey after survey shows that employees know they should participate in 401(k) retirement accounts. But they're confused about how — how much to contribute, which funds to pick, how much the company helps.

Add a new option to the mix, one that so far has several financial experts still wondering whether it's a good choice.

Starting Jan. 1, employers can offer a Roth 401(k), an account based on the popular Roth IRA private retirement account model that would allow workers to save more money.

How would it work? In a traditional 401(k), contributions are made with pre-tax dollars. The account's gains are also tax-deferred. However, you owe taxes on money that is withdrawn.

A Roth 401(k) will be..........

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