Roth 401(k) Guide
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Roth 401(k)
Offer your employees another way to save by adding a Roth option to your company’s 401(k).
What is a Roth 401(k)?
A Roth option for your 401(k) plan allows you and your employees to contribute after-tax earnings toward retirement–and face no additional taxes on those savings or any investment earnings when the money is withdrawn during retirement.
How it Works
A Roth 401(k) allows employees to contribute to different types of accounts with different tax benefits; a tax-deferred 401(k) and an after-tax Roth account.
Why Offer a Roth 401(k)
Enabling employees to contribute to tax-deferred and after-tax accounts can reduce overall taxes paid over the life of the investment and increase retirement savings.
How Fisher Can Help
Fisher is one of America’s top advisory firms with deep experience helping business owners and plan employees utilize a Roth 401(k) to reap the benefits of tax diversification.
MUST-SEE 2-MINUTE VIDEO
Answers to Frequently Asked Roth 401(k) Questions
Watch this video to get answers from a Fisher Retirement Specialist to frequently asked Roth 401(k) questions.
| Visual | Audio |
|---|---|
| Roth 401(k) FAQs Fisher Investments® 401(k) Solutions | [Upbeat music] |
| A man dressed in a navy sweater speaks to the camera. A flyout in the lower left corner identifies him as Dylan Marks, Retirement Plan Specialist. | [The volume of the music is reduced] Hi, I’m Dylan Marks and I am a Retirement Plan Specialist at Fisher Investments. We help small businesses improve their retirement plans for wealth creation—this often includes a Roth component. Here are some common questions we often get asked about Roth. |
| A green flyout from the lower left with the question: What is the difference between Traditional & Roth 401(k) contributions? | What is the difference between Traditional & Roth 401(k) contributions? Traditional 401(k) contributions are made on a pre-tax basis. This means you don’t pay taxes on the contributions until you withdraw them in retirement. The earnings grow tax-deferred. Conversely, Roth 401(k) contributions are made on an after-tax basis. This means you pay the taxes on the contributions today, but all earnings are NEVER TAXED. When Roth assets are withdrawn in retirement, you do not pay taxes on them. Another question I get, What are the benefits of Roth 401(k) contributions? |
| The camera zoom back in. A green flyout from the lower left with the question: What are the benefits of Roth 401(k) contributions? | The main benefit is that the earnings on Roth contributions are NEVER TAXED. By making a combination of Roth & traditional 401(k) contributions, employees can enjoy both tax benefits today, as well as have access to tax-free income in retirement. It’s also easy to add a Roth option to your existing 401(k)—your advisor can help you. |
| The camera zoom back out. A green flyout from the lower left with the question: How do I support my employees when it comes to Roth 401(k) contributions? | Another common question is – How do I support my employees when it comes to Roth 401(k) contributions? Plan participants often don’t know whether to make Roth or traditional 401(k) contributions. It’s important to have an advisor who provides employee education and support to help the employees make informed decisions. Here at Fisher we do this proactively by providing group education sessions, as well as one-on-one meetings to help guide employees to achieve their retirement goals. |
| White slides over the screen covering it. Fisher Investment 401(k) Solutions logo fades on to the screen. | The volume of the upbeat music increases. |
| Fisher Investments. Investing in securities involves the risk of loss. Intended for use by employers and their consultants, considering or sponsoring retirement. | |
| Screen fades to black. | Music fades out. |
Roth 401(k) Benefits
- Roth contributions grow tax-free.
- Roth assets enable tax diversification in retirement by creating a tax-free income option.
- There is no income threshold for Roth 401(k) contributions, making it the only tax-advantaged option for high earners to create tax-free income in retirement.
Tax Diversification Case Study
See how to leverage a Roth 401(k) to reduce reduce taxes and increase retirement savings.
Roth 401(k) Guide
Learn how employees can use a Roth 401(k) to create tax diversification.
Contact Us
One of our 401(k) business specialists would love to talk to you about your company’s retirement plan needs.
Call Us
(877) 626-0277
