What is a Roth 401(k) Plan?
Employers can also establish a special type of 401(k) plan called a Roth 401(k). This plan is similar to a traditional 401(k) plan in that it allows employees to defer salary in to the plan. The difference relates to the tax treatment. Contributions to traditional 401(k) plans are tax deductible, contributions to Roth 401(k) plans are not tax deductible. Whereas, the tax benefits for Roth 401(k)s come when you take distributions, which will be tax free so long as certain requirements are satisfied.
The IRA Financial Group’s Solo 401(k) Plan allows for Roth type contributions.
Please contact one of our 401(k) Experts at 800-472-0646 for more information.