Are you offering a Roth 401(k) plan option yet?

Description

Abstract: In a Roth 401(k) plan, participants make after-tax contributions to a qualified plan and receive tax-free distributions, provided the funds are in the plan for at least five years from the date of the initial Roth 401(k) plan contribution. Thus, while participants pay a tax on the income that was the source of the contribution, the earnings on the contributions are tax-free. This article summarizes Roth 401(k) basics and provides support for implementing a Roth option into a 401(k) plan.