Monday, March 21, 2016

Better a Roth 401(k)? Or Pre-Tax (Old-Fashioned) 401(k)?

To Roth ... or not to Roth.

... Both a traditional and Roth 401(k) have a place in your retirement nest egg, and you needn’t choose between them. In fact, the best move may be to hedge your bets if your employer is one of the 50% of plan sponsors that offer both. ...

With a Roth 401(k), you pay taxes up front. In other words, you contribute to your retirement account with money from your paycheck after it has already been taxed. Once in the account, your money grows tax-sheltered. Then at retirement, qualified withdrawals come out tax free.

By contrast, contributions to traditional 401(k)s are made with pre-tax dollars. The money is allowed to grow tax sheltered. But when it comes time to tap the account in retirement, withdrawals will be taxed as ordinary income....

TAG's 401(k) Plan introduced a Roth option for contributions earlier this year. Some participants are going all in, while others are splitting their contributions between the traditional 401(k) and the Roth.


22 March (Tuesday) -- Cartoon Network -- Main Conference Room -- 203 p.m.

23 March (Wednesday) -- Nickelodeon Studio (Olive Ave.) -- Main Conference Room -- 2-3 p.m.

29 March ((Tuesday) -- Disney TVA (Empire Center) -- Rm 5223 (fifth floor -- 2-3 p.m.

30 March (Wednesday) -- Disney TVA (Sonora) -- Rm 172 -- 2-3 p.m.


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