Thread: ROTH 401K at UPS?
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Old 06-27-2007, 07:23 PM
  #6  
⌐ AV8OR WANNABE
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Joined APC: Mar 2006
Posts: 3,333
Thumbs up Roth 401K is here! :)
Ok, so here I am replying to my own question...

I just received the 401K Roth info. Basically 401K and Roth 401K work exactly the same way except you choose when you want to pay your taxes by selecting the respective plan.

If you save in a "regular" 401K plan you’ll pay later - when you retire; if you save in a Roth 401K plan you’ll pay now but once you retire there won’t be any taxes on it (of course - this assumes Hillary and then Chelsea won't become our next presidents because then all the bets are off! )

In general pilots with many years to go and especially the ones who are still making "small" bucks are better off with Roth 401K. Also, Roth 401k is great if you want to leave some money to your kids, grandkids, etc because there won't be any inheritance tax on it - it's been paid already!).

At least that's what “my” financial guru - Dave Ramsey (sp?) always says – he’s been a big proponent of those plans for quite some times.

So as of July I'll be saving in Roth 401K instead of the regular 401K. Well, Dave Ramsay is not the only reason I’ll be doing it – my accountant recommended it as well.
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