Get the lowdown on Roth 401(k) plans

Description

Abstract: A Roth 401(k) plan shares features with both traditional 401(k) plans and Roth IRAs. This article looks at some of the plan’s specific features and how such a plan can benefit some employees, especially if they’re high-income earners and if they’re concerned that their tax rate may be higher in retirement. While the ability to contribute to a Roth IRA is reduced or even eliminated if a taxpayer’s income exceeds certain amounts, no such limits apply to Roth 401(k)s.