Roth 401k plan has been available as of 7-1-11

Discussion in 'UPS Discussions' started by air_dr, Aug 20, 2011.

  1. air_dr

    air_dr Member

    About a week ago I received a disk in the mail containing information on the 401k plan. I have known that a traditional 401k plan has been available, but I was delighted to learn that a Roth option has been available as of this past July 1st. I signed up right away this week, and wanted to do my part to spread the word on what I believe is a very useful investing tool.

    I don't understand why I wasn't told of this option sooner because I would have been in on day 1. Perhaps its because I haven't participated in the traditional 401k plan which has been available all along...Anyway...for anyone who may not know the differences, on a Roth plan (IRA or 401k), you will likely get no tax break for the year when you invest the money, but all of your money including growth and dividends are typically tax free when you withdraw it so long as you are over 59 1/2. This is in contrast to the traditional plan where you get a tax break in the year you make your contribution, but then, once you start withdrawing, you are taxed at ordinary income rates, which are higher than capital gains and dividend rates.
  2. bellesmom

    bellesmom Member

    Thanks for the info and reminder. I had forgotten to open the disk and watch.
  3. Cementups

    Cementups Box Monkey

    Thanks for the 411 on the 401. I kind of scoffed at the disc, now I'm going to have to check it out.
  4. packageguy

    packageguy Well-Known Member

    Yes that is what my tax guy told me too,