The Roth 401(k) - New Kid In Town
0 views
Skip to first unread message
Bob Miles
Apr 19, 2013, 1:10:03 PM4/19/13
to publish-the...@googlegroups.com
*****************************************************************
Message delivered directly to members of the group:
publish-the...@googlegroups.com
*****************************************************************
Please consider this free-reprint article written by:
Bob Miles
*****************************
IMPORTANT - Publication/Reprint Terms
- You have permission to publish this article electronically in free-only publications such as a website or an ezine as long as the bylines are included.
- You are not allowed to use this article for commercial purposes. The article should only be reprinted in a publicly accessible website and not in a members-only commercial site.
- You are not allowed to post/reprint this article in any sites/publications that contains or supports hate, violence, porn and warez or any indecent and illegal sites/publications.
- You are not allowed to use this article in UCE (Unsolicited Commercial Email) or SPAM. This article MUST be distributed in an opt-in email list only.
- If you distribute this article in an ezine or newsletter, we ask that you send a copy of the newsletter or ezine that contains the article to http://www.isnare.com/eta.php?aid=144177
- If you post this article in a website/forum/blog, ALL links MUST be set to hyperlinks and we ask that you send a copy of the URL where the article is posted to http://www.isnare.com/eta.php?aid=144177
- We request that you ask permission from the author if you want to publish this article in print.
The role of iSnare.com is only to distribute this article as part of its Article Distribution feature ( http://www.isnare.com/distribution.php ). iSnare.com does NOT own this article, please respect the author's copyright and this publication/reprint terms. If you do not agree to any of these terms, please do not reprint or publish this article.
*****************************
Article Title: The Roth 401(k) - New Kid In Town
Author: Bob Miles
Word Count: 349
Article URL: http://www.isnare.com/?aid=144177&ca=Finances
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=144177
Easy Publish Tool: http://www.isnare.com/html.php?aid=144177
*********************** ARTICLE START ***********************
A traditional 401k plan is an arrangement under tax law by which an employer can deduct pre-tax money from your paycheck and the employee can invest it. In a traditional 401k this money is nontaxable until you withdraw it, at which time you will likely be in a lower tax bracket.
Those who are looking into retirement savings plans should also take not of the Roth 401k that became effective in 2006. The Roth 401k is a hybrid between the traditional 401k and the Roth IRA, and was legislated in George W. Bush�s tax cut package. It operates differently than the traditional 401k plan. Below is an explanation of the pros and cons of the Roth 401k:
The bad news:
- Favorable tax treatment limited to those who are disabled, or at least 59.5 years old, or who have held the account for more than 5 years
- it is not available to taxpayers with an income above a certain level at the time their account is opened.
- There is no upfront tax deduction
- employees whose employers do not offer Roth 410k plans are ineligible
- Not many employers offer Roth 401k plans because it is new, and because it is expensive to introduce.
The good news:
- Any employee whose employer offers the plan is eligible.
- Withdrawals taken after retirement are no subject to income tax
- It can be rolled over into a Roth IRA if you quit your job.
- There is no loss of eligibility for if your income exceeds maximum eligibility limits after your account is opened.
- Because of the deferred tax benefits, Roth 401k accounts can appreciate faster than a traditional plan, leading to higher retirement income.
This structure makes the Roth 401k suitable for youth who expect their income to grow over time. A traditional 401k plan will leave you more money now, but a Roth 401k will leave you better off after retirement.
About The Author: �401k Plans� at http://401kplans.blogspot.com offers readers complete information about 401k Plans, Roth IRAs, and other retirement plans (see also http://401kplans.blogspot.com/2007/03/roth-401k-plan-new-kid-in-town.html).
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=144177
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
Message delivered directly to members of the group:
publish-the...@googlegroups.com
*****************************************************************
Please consider this free-reprint article written by:
Bob Miles
*****************************
IMPORTANT - Publication/Reprint Terms
- You have permission to publish this article electronically in free-only publications such as a website or an ezine as long as the bylines are included.
- You are not allowed to use this article for commercial purposes. The article should only be reprinted in a publicly accessible website and not in a members-only commercial site.
- You are not allowed to post/reprint this article in any sites/publications that contains or supports hate, violence, porn and warez or any indecent and illegal sites/publications.
- You are not allowed to use this article in UCE (Unsolicited Commercial Email) or SPAM. This article MUST be distributed in an opt-in email list only.
- If you distribute this article in an ezine or newsletter, we ask that you send a copy of the newsletter or ezine that contains the article to http://www.isnare.com/eta.php?aid=144177
- If you post this article in a website/forum/blog, ALL links MUST be set to hyperlinks and we ask that you send a copy of the URL where the article is posted to http://www.isnare.com/eta.php?aid=144177
- We request that you ask permission from the author if you want to publish this article in print.
The role of iSnare.com is only to distribute this article as part of its Article Distribution feature ( http://www.isnare.com/distribution.php ). iSnare.com does NOT own this article, please respect the author's copyright and this publication/reprint terms. If you do not agree to any of these terms, please do not reprint or publish this article.
*****************************
Article Title: The Roth 401(k) - New Kid In Town
Author: Bob Miles
Word Count: 349
Article URL: http://www.isnare.com/?aid=144177&ca=Finances
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=144177
Easy Publish Tool: http://www.isnare.com/html.php?aid=144177
*********************** ARTICLE START ***********************
A traditional 401k plan is an arrangement under tax law by which an employer can deduct pre-tax money from your paycheck and the employee can invest it. In a traditional 401k this money is nontaxable until you withdraw it, at which time you will likely be in a lower tax bracket.
Those who are looking into retirement savings plans should also take not of the Roth 401k that became effective in 2006. The Roth 401k is a hybrid between the traditional 401k and the Roth IRA, and was legislated in George W. Bush�s tax cut package. It operates differently than the traditional 401k plan. Below is an explanation of the pros and cons of the Roth 401k:
The bad news:
- Favorable tax treatment limited to those who are disabled, or at least 59.5 years old, or who have held the account for more than 5 years
- it is not available to taxpayers with an income above a certain level at the time their account is opened.
- There is no upfront tax deduction
- employees whose employers do not offer Roth 410k plans are ineligible
- Not many employers offer Roth 401k plans because it is new, and because it is expensive to introduce.
The good news:
- Any employee whose employer offers the plan is eligible.
- Withdrawals taken after retirement are no subject to income tax
- It can be rolled over into a Roth IRA if you quit your job.
- There is no loss of eligibility for if your income exceeds maximum eligibility limits after your account is opened.
- Because of the deferred tax benefits, Roth 401k accounts can appreciate faster than a traditional plan, leading to higher retirement income.
This structure makes the Roth 401k suitable for youth who expect their income to grow over time. A traditional 401k plan will leave you more money now, but a Roth 401k will leave you better off after retirement.
About The Author: �401k Plans� at http://401kplans.blogspot.com offers readers complete information about 401k Plans, Roth IRAs, and other retirement plans (see also http://401kplans.blogspot.com/2007/03/roth-401k-plan-new-kid-in-town.html).
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=144177
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
Reply all
Reply to author
Forward
0 new messages