Roth IRA

Submitted by Pat Sager on Sun, 2012-12-02 12:16

I have a 401K plan with my employer which I participate in. I also have a Roth option. Can you comment on the maximum income which does not allow participation in the Roth. Is this maximum based on gross income or adjusted gross?

Thanks,



Submitted by Alan Spross on Sun, 2012-12-02 17:58

There is no income limitation for contributions to a Roth 401k. This is one of the ways a designated Roth (Roth 401k) differs from a Roth IRA.

The desision on whether to contribute to the Roth vrs the pre tax account is similar to the IRA situation, basically your marginal tax rate now vrs what you expect it to be in retirement.

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