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.