It may be time to talk to your fund administrator about adding a new feature to your organization’s portfolio of retirement benefits: the option for employees to transfer 401(k) funds into a Roth 401(k).
It’s a little-noticed tax break that was tucked into the “fiscal cliff” tax law—the American Taxpayer Relief Act of 2012.
Moving retirement savings from a traditional 401(k) to a Roth 401(k) could provide a big boost, especially for upper-income savers.
And setting up a Roth 401(k) retirement option can be particularly advantageous for workers under 30, who will probably be taxed at progressively higher rates as they continue working.
Your retirement fund provider can help set up a Roth 401(k) option for your employees. So far, the funds have proven popular in large firms, but they’re gaining traction among smaller employers, too.
A tax-free retirement?
Roth 401(k)s offer attractive tax incentives.
How attractive? Try tax-fr...(register to read more)