It’s Testing Season!
If your plan offers a Roth 401(k) provision, your participants might ask, “which one is better for me?” As the availability of Roth options in 401(k) plans and Roth contribution percentages continue to rise, it’s important to be able to guide participants in making the right choice.
401(k) plans offer many advantages to participants, the ability for accounts to grow on a tax-deferred basis, the chance of receiving employer contributions in the form of a match or non-elective contribution, the ability to contribute even after attaining age 70 1/2 and protections from bankruptcy. These benefits are consistent whether a participant chooses traditional or Roth contributions, or even both! So, what makes Roth and Traditional routes different and what are the advantages and disadvantages of each? Check out this edition of Benefit Insights, a non-technical review of qualified retirement plan legislative and administrative issues to find out!
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