|
Roth 401k Resources |
|
Roth 401k FAQ
Who can have a Roth 401k ?
Is a Roth 401k always a better deal than a regular 401k ? The net present value of $100 put in a Roth 401k is not higher than putting it into a traditional 401k. The Roth 401k is only a better choice if taxes are high in retirement. However, the Roth 401k is a better deal if you can afford to increase your total 401k contributions.
Can the Employer Matching contribution go into a Roth 401k ? No. Employer Matches will continue to be pre-tax contributions going into a traditional 401k account.
Are there penalties for Early Withdrawals ? Yes, Roth 401k accounts are subject to the same early withdrawal penalties as regular 401k accounts. Early withdrawals will trigger a 10% penalty.
What happened at termination or retirement ? A Roth 401k can be rolled over into Roth IRA accounts once an employee leaves his/her firm.
Will the Roth 401k be available to unemployed individuals ? Only employees whose employer offers a Roth 401k option can participate.
|
|
FAQs
|
