Thursday, September 07, 2006

Roth 401(k)s often beat conventional 401(k) plans

"It's time to stir things up at the office. Thanks to the new pension law, Roth 401(k) plans are no longer slated to disappear in 2011 -- and that means a lot more companies will consider offering these plans. Want a shot at tax-free investment growth? Here's why you should phone up human resources and put in a request for the Roth 401(k)."

A very good arguement by Jonathan Clements on why a Roth 401(k) is a good idea - it basically forces you to save more than you normally would, and on a tax free basis. I think this will be a rising trend. I do like a Roth IRA better than the Roth 401(k), however some people don't qualify for the Roth IRA, or simply will never start one - while they might with their employer.

Scott Dauenhauer, CFP, MSFP