Roth 401(k)...

Anybody utilizing these yet? It looks to be better than the traditional 401(k). Kinda like the Roth/Traditioanl IRA situation. My employer is starting one next year. Pros/Cons?

 

two grand a year. set it and forget it.

 

What the hell are you talking about?


Edit: Isn't the max a little larger than $2G/year?

 

The limit for any 401k contribution this year is $15,500. You can break that up however you like. However, I do not think that companies will match on Roth 401k contributions. so what I have seen suggested is that you contribute the minimum amount to get the company match and anything left over is put into the Roth portion of the plan.

My company does not have that option now. so I won't do much more research right now. If they add it in the future, I will look into it a little more.

Edit: According to this article, the match will still be made. but it will be in a pre-tax account. But what do you care? those are 'free' dollars anyway.

http://www.smartmoney.com/retirement/401k/index.cfm?story=which401k050609

decent article to get you started on making your decision.

 

Cool. Seems some businesses, like mine, are automatically signing new hires up for the 401k plan. It wouldn't bother me but I'm not sure all would like that.

 

yeah, that is the new trend. i read the other day where the statistics show that only about 30% of people sign up if you give them the choice. Forcing them to opt out, increases participation dramatically. the issue seems to be where to invest those dollars. Some say that Stable Value funds are too conservative. others say that you shouldn't automatically risk employees' money in the stock market without their consent.

personally, i like the idea. i started my career in the 401k business and I saw a lot of people ignore this benefit and in the process, their future.

 

I agree. I have no idea why one would not want free money. To each his own I guess. My plan has a "fixed income" fund that's basically a savings account. I'm guessing that's where they park the money. They only force 3% though.