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Re: Roth 401k vs Traditional
Old 11-24-2005, 10:12 PM   #21
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Join Date: Nov 2005
Posts: 300
Re: Roth 401k vs Traditional

I see two advantages to the Roth 401k that I have not seen mentioned above.

1) You can effectively contribute more money to the Roth 401k than
* * *to a traditional 401k.* Though this only matters if you have hit
* * *the federal limit on your annual contributions.
* * *If you do hit the limit, then your Roth contribution is effectively
* * *larger by whatever marginal tax rate exists when the money
* * *is eventually withdrawn.

2) If you plan to leave any money to relatives, you are better off
* * *leaving money in a Roth account than in a "traditional" account.
* * *That stretches out the tax free compounding to the max.

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