Retirement
Use Roth Analyzer to Determine Best Way to Save
The 401(k) plan offers traditional pre-tax and Roth 401(k) after-tax contributions. The Roth 401(k) option offers “tax diversification” for distributions. That is, distributions of pre-tax contributions and associated earnings are subject to ordinary income tax, whereas “qualified” distributions of Roth 401(k) after-tax contributions and associated earnings are tax free.
The Roth 401(k) Analyzer can help you decide which contribution type…or combination of contributions…is best for you.