Harvesting Your Retirment In A Tax Free Environment
You and your employees have the option to invest some or all of your paycheck contributions post-tax in a Roth 401k. You may benefit from paying those taxes now, because your Roth 401k contributions and earnings cannot be taxed again later. 1
So what’s the big deal about that? Well, all growth achieved with these investments will accrue tax-free. Assuming you have some time to accumulate, reach a critical mass, and realize respectable gains, a tax-free harvest is very appealing.
Traditional 401ks were designed to give you a tax break today on the money you contribute to your 401k.
However, once you withdraw that money in retirement, the government taxes it as income, growth and all.
Fortunately, the Roth 401k offers an alternative. If returns are consistent over time, it has the potential to provide you with some major tax advantages. Our Roth 401k is no exception, providing you with an easy means to tax-free retirement income.
What’s the catch?
No catch, but your paycheck will take a bigger hit today. If you can afford to pay a bit more up front, you may stand to benefit greatly come retirement, when that money may matter more to you and your family.
1 Assumes withdrawals are made upon reaching retirement age.
Nice read, I just passed this onto a colleague who was doing some research on that. And he actually bought me lunch since I found it for him smile Therefore let me rephrase that: Thanks for lunch!
I was curious if you ever thought of changing the layout of your site? Its very well written; I love what youve got to say. But maybe you could a little more in the way of content so people could connect with it better. Youve got an awful lot of text for only having one or two pictures. Maybe you could space it out better?
Thank you for another informative web site. The place else may I am getting that kind of info written in such a perfect means? I have a mission that I’m just now operating on, and I have been on the glance out for such info.
Just wanna state that this is extremely helpful, Thanks for taking your time to write this.