Comments on: What is a Roth 401k?

By: No Debt Plan

No Debt Plan — Mon, 08 Sep 2008 02:59:09 +0000

We have a Roth 401k, and I switched to it as soon as it was available. The idea of never paying taxes on the money again is a big plus. We had a long discussion on my blog about it… the end result, as you mention, is complicated and based on your tax rates.

By: My Dollar Plan

My Dollar Plan — Mon, 08 Sep 2008 02:08:44 +0000

I love the Roth 401k. However, we don’t use it because it disqualifies us from the child tax credit. Something to keep in mind when you are using after tax money that normally would have reduced your taxable income.

By: Weekly Round-Up Football Season is Here Edition

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[...] What is a Roth 401k?. Like a Roth IRA, but different. [...]

By: Fall is near

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By: Kim

Kim — Wed, 03 Sep 2008 03:13:09 +0000

My company also offers one with no match. There are very few choices on what I can invest in. I’ll be starting one up next year but I’ll use Etrade instead.

By: "Mo" Money

"Mo" Money — Tue, 02 Sep 2008 15:04:42 +0000

The key to any retirement plan is to start now! The time lost in waiting can never be regained. If you choose the plan with a lesser pay out can always be made up, time cannot be made up..The best action is Ready, Fire, Aim…

By: Frugal Dad

Frugal Dad — Tue, 02 Sep 2008 14:42:33 +0000

My employer doesn’t offer a Roth 401(k), but I’ve asked and apparently it is in the works. I like the idea of tax-free growth, even if I have to give up the pre-tax contribution now.

By: Patrick

Patrick — Tue, 02 Sep 2008 14:29:37 +0000

At my previous company contributions to a Roth 401(k) were matched in a traditional 401(k) account because Roth contributions are post-tax, whereas traditional contributions are pre-tax (as is the company match). I believe it is like this everywhere because of the tax laws, but I am not positive.

I never signed up for the Roth 401(k) at my previous company because it was only available for a couple months before I changed jobs. It is not available in my new job, but I would probably take advantage of it unless I needed to reduce my taxable income to be in a lower tax bracket.

By: Roshawn @ Watson Inc

Roshawn @ Watson Inc — Tue, 02 Sep 2008 13:49:10 +0000

I agree that most people come out ahead with Roth 401K. Any investment vehicle that grows tax-free typically means you get to keep more wealth in the long run.