The Roth Contribution Option

The new Roth contribution option can afford significant tax advantages to some taxpayers. But who? The answer depends on a number of factors, and some of those factors are predicated upon the future.

If a retirement plan offers two contribution options--traditional pre-tax contributions and Roth contributions--this tool can help a taxpayer decide which investment option may be better. Working through the following factors, this tool can assist in making a decision between traditional pre-tax and Roth after-tax contributions. Throughout this tool, we'll explain the factors that are important to consider and ask for specific information. By speaking to a plan administrator or human resources contact, employers can help determine if a plan offers a Roth feature.