Roth Accounts Can Boost Retirement Savings
Roth Accounts Can Boost Retirement Savings
Professor Jamie Hopkins was recently quoted in a Consumer Reports article discussing Roth accounts. American’s struggle with retirement planning, but what is driving it? Professor Hopkins notes that Roth savings can help a client diversify his or her public policy risk and actually save more money each year. For instance, saving $18,000 in a 401(k) salary deferral is actually less money than $18,000 in a Roth 401(k) account. Why? Because the government owns a portion of your $18,000 in the salary deferral account. But, in the Roth account that money is all yours.
Furthermore, a Roth account is more flexible. You can spend it when you want to and not when the government tells you to spend it. Traditional IRAs and 401(k)s are subject to mandatory withdrawals at age 70.5. However, Roth IRAs are not subject to that requirement. Meaning, you have more control over your money.
To learn more and read the article, click the link below to see the Consumer Reports article featuring Professor Jamie Hopkins.