How Do Roth 401(K) Plans Work?

If your company offers a 401(K) plan to your employees, some of them may inquire about treating the contributions as Roth contributions. This is how you can be prepared to answer their questions about Roth 401(k) contributions. What is a Roth 401(k)? This type of employer-provided retirement account allows the employee to designate Roth contributions […]

Are Roth IRA Early Withdrawals Always Taxable?

Question: I’m withdrawing from my Roth IRA before reaching the age of 59 1/2. Is this withdrawal subject to taxes and the 10% early withdrawal penalty? Answer: The answer to this question depends on whether this distribution was a withdrawal of contributions or earnings, among other factors. If this was a withdrawal of your initial […]