A recent article in the Lansing State Journal praises the Roth 401(k) for offering savers flexibility in saving for retirement. Unlike traditional 401(k) plans, where contributions are made pre-tax and taxes are paid upon withdrawal, Roth 401(k) plans are invested with post-tax contributions. Earnings are not taxed upon withdrawal.

Participants do not have to choose between the two types of plans. They can participate in both the Roth and traditional 401(k) plan if they so desire. Having the ability to make both pre-tax and post-tax contributions may help a participant later on when it becomes time to make a withdrawal and his/her tax situation may be different. Participants should note, however, that they cannot transfer money between the two plans. Also, the IRS contribution limits are combined for the two plans, they are not applied individually.

NADART is pleased to be able to offer the Roth 401(k) as one of the features to its retirement plans. If you are interested in learning more, please complete the Production Information Request Form or contact (800) 462-3278 ext. 7161.