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Saving for retirement is a key concern for most of your clients. Helping them make the best choices for where to direct their retirement savings is an important component of the advice that you provide to them. One such choice is whether to contribute to a traditional 401(k) account or to a Roth 401(k) option.
What Is a traditional 401(k)?
A traditional 401(k) account offers clients the ability to make pretax contributions to their account. This provides a current-year tax benefit and allows the investments in the account to grow tax-deferred until withdrawals are made from the account. Distributions are subject to taxes at the client's ordinary income tax rate, plus a penalty for withdrawals prior to age 59 ½ with a few exceptions.
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Roger Wohlner
Roger is a financial writer who brings his extensive experience as a financial advisor to his writing. Fluent on a wide range of financial topics, his work has been featured in MarketWatch, TheStreet, Investopedia, Morningstar Magazine, GOBankingRates, US News & World Report, Yahoo! Finance, The Motley Fool and a number of other sites. Roger ghostwrites extensively for financial advisors, financial services providers and investment managers. In addition to his work as a financial writer, Roger has over 20 years of experience as a financial advisor. Roger earned his bachelor’s degree in finance from the University of Wisconsin-Oshkosh and his MBA from Marquette University. Check out Roger’s LinkedIn profile.
