With summer upon us, many recent college graduates are entering the workforce. One of the best ways to attract and retain young employees is to offer a 401(k) plan. When it comes to saving for retirement, younger workers have the benefit of time on their side and are looking for employers who can best help them take advantage of their earning potential.
One retirement plan vehicle that can be advantageous to younger workers, according to an article on Forbes.com, is the Roth 401(k) plan. With a Roth 401(k), contributions are not tax-deferred, as is the case with a typical 401(k) plan. However, the contributions and any interest earned on them are not taxed upon withdrawal at retirement. This protects workers who may have a higher income tax rate as they get older.
The Roth 401(k) plan is just one of an array of retirement plan features that NADART offers. If you’re interested in learning more about how you can get started with a Roth 401(k) or any of our other retirement plans, please contact a NADART representative at (800) 462-3278, ext. 7161 or e-mail nadart401k@nada.org.