Alex The Great
Recycles dryer sheets
I recently did come across this strange employer sponsored plan: Roth 401K. It appears to be similar to ordinary 401K plan offered to employees, but funded by after tax money. I wonder does anyone actually have this plan? And if so, what is the advantage? I did some research on Internet and one opinion is that it may be easier to roll over 401K into Roth 401K, rather than into Roth IRA after employment termination. But I'm not quite convinced. It looks like another advantage is for those people who expect their tax to grow later in time (so they can pay lower tax early). But it is hard to see in the case of ER: the tax usually reduced after retirement. I'd appreciate your opinions.
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