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Pro Money Talk » 2006 » April

Archive for April, 2006

The New Roth 401k

Wednesday, April 19th, 2006
 
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Our guest this week is Jim Skrydlak discussing what we know and don’t know about this very new and exciting retirement vehicle. Jim is an advisor to financial planning firms and has studied the new Roth 401k rules in order to provide assistance to his clients. Here he describes the relevant details in a manner that anybody can understand.

Roth 401k’s are not well known but became available January 1st 2006. This new plan could have significant benefits to individuals who participate but it’s important to know that this is not the best plan for everyone.

In this interview Jim explains how Roth 401k’s came into existence and provides information for our listeners to better understand the pros and cons of this plan as it applies to them. There is so little good information about Roth 401k’s available, this may be the first comprehensive explanation on the topic available.

We discuss:

· Why Roth 401k’s are just being implemented

· The difference between a Roth 401k and a Roth IRA

· The difference between a Roth 401k and a traditional 401k

· Who benefits from a Roth 401k

· Who would not benefit

· The tax advantages of a Roth 401k

· The risks of using a Roth 401k

· Examples and strategies for use

In the show Jim recommends four websites for various information. These websites are: www.tagdata.com - provides a list of Roth 401k providers.
www.psca.org - the profit sharing and 401k council of America www.irs.gov - the IRS website www.roth401k.com - more articles about the Roth 401k

As a new feature, Pro Money Talk is now available on your cellphone. Simply click on the “mobilize the last show” button on the website, enter your telephone number and this show will be sent to you phone!

We hope you enjoy this show and don’t forget to listen to our next episode where we talk with Nobel Prize winning economist Bill Sharpe! Until then, here’s to your success!