Recently, a questioned was asked on CNNMoney.com about whether it was better to participate in a Roth 401(k) or a traditional 401(k) plan. The article is worth looking at, as it gives very good examples of the two plans and the pros and cons associated with each one.

To determine which plan is best for a particular individual, it is helpful to know whether he/she will be at a higher or lower tax rate when they retire. Those expecting to be at a higher tax rate may want to consider the Roth 401(k), while those who expect to be at a lower rate, may want to choose the traditional 401(k) plan. However, it is difficult to predict what tax rate one will be at upon retirement, as there are a variety of circumstances that can determine this. For this reason, a participant may want to contribute to both plans.

NADART offers both traditional and Roth 401(k) plans. If you’d like to learn more about the Roth 401(k) or any of our other plans, please complete the Product Information Request Form.