When Roth 401(k) and 403(b) Plans Outshine Traditional Plans

Langdon, Thomas P.; Grange, E. Vance; Dalton, Michael A.
July 2006
Journal of Financial Planning;Jul2006, Vol. 19 Issue 7, p60
Academic Journal
The article explains the benefits of the Roth plans 401(k) and 403(b). These Roth financial plans will be available to business owners through 2010. There is a model comparing the Roth break-even point for accumulated retirement benefits with traditional plans. Topics include lack of income phase-outs, Roth individual retirement accounts, hedging against future tax, avoidance of minimum distributions, tax-rate changes in retirement, and the statute that limits employer contributions to employee Roth accounts. INSETS: Executive Summary;Appendix.


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