Frequently Asked Roth 401k Questions

1) What’s the difference between a Roth 401k and traditional 401k pre-tax deferral plan? In a traditional 401k plan, annual contributions are made with pre-tax dollars (meaning BEFORE taxes have been paid). On the other hand, a Roth 401k plan requires annual contributions to be made with AFTER-tax dollars (after taxes have been paid). For …

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Roth 401k – A Look at the Final Roth 401k Rules

Starting December 30th, 2005, the US Treasury Department issued and confirmed the Roth 401k Rules for 401k retirement plan savers. These Rules come into effect starting January 3rd, 2006 and we will look indepth at some of these Roth 401k rules. Required Minimum Distribution Rules Confirmed Since Regular Roth IRAs are not subject to the …

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401k Minimum Required Distributions (MRDs)

401k Minimum Required Distributions (MRDs) are established by the Internal Revenue Code to make sure that retirees actually withdraw their money upon retirement (and use it for their day to day expenses) as opposed to passing on this wealth to their heirs. As soon as you reach the age of 70.5, you must start withdrawing …

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