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FedEx Freight | $$$$ Let's get a ROTH 401K $$$$$

G

Grease Gun

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I would like to see if we can get the company to offer a ROTH 401K. I know that the plan is available IF an employer wants to go through whatever costs would be associated with it's implementation. As we try to save for the future the ROTH 401K does have some unique advantages. Especially to those that have a considerable amount of time to contribute. As I am likely to retire in 10-12 years I doubt that I would even contribute more POST tax money at this point. I do however have a regular ROTH as does my wife. For those who are able to contribute at a reasonable post tax rate and have the means to do so the benefits will be great down the line. Just the idea that you can save money, invest it, and never again have to pay taxes on those monies OR the accumulated dividends and capital gains is incredible. How the Congress let this one get passed I'll never know.
For example (this is from an American Funds Annual report)
If one had $10,000.00 invested in the S&P 500 as of Aug 1978 and left it there with reinvested dividends it would have been worth $335,199.00 as of Dec 31, 2006
Now if that was in a Pre Tax (taxable when withdrawn account) as ones regular 401K is.....it will all be taxed as you withdraw it. All $335,199.00 of it.
Consider the ROTH....You would have paid taxes already on your earnings before you contributed the original $10,000.00. The remaining monies (a result of the long term growth and dividends over 28 years) would never be taxed... NO taxes whatsoever on the balance. $325,199.00 you get to take out TAX Free.
The opportunity is great if you start young. OR if you believe as I do that taxes will likely be higher in the future with all of us old-timers on SS and Medicare.
Wikipedia has a pretty good page on the ROTH 401K Roth 401(k - Wikipedia, the free encyclopedia)
If enough of us at National and Freight ask our HR people to work on this maybe someday we will have this option.
 
Think Future

Come on guys.... a little help needed here. If you could just think a bit about your priorities. I know it's more fun talking about trucks, CB's and a 2cent raise but this is something that can make a real difference when you retire. I tried in KC to bring a ROTH 401K to managements attention. (Got the deer in the headlights look) I'm going to send in a speak-up form. It'd be great if some of you from other terminals would start asking about it too. Talk to your FEDEX Freight friends also. If we had it a young guy could have hundreds of thousands available TAX free when he retires for a modest biweekly deduction from the paycheck. GUN
 
Right now I am more worried about having a job at the end of the day! This "conversion" looks very disorganized, in fact it reminds me of the old Viking - Caliber take over of Central Freight, Coles, and Spartan. After throwing millions of dollars trying to convert all 4 companies the closed the doors on everything east of Denver Co. and put alot of drivers out of work.
 
Howdy Fireman

Doing good Fireman. How bout you? Is the big changeover affecting you. Feel bad for a lot of the guys over in STL and other terminals. Having to make up there minds whether to pull up roots and move etc. has to be a major pain in the ***. I'll be running a meet to Blackwell OK starting the 23rd. Leaves 1:15PM so I'll get to see a little daylight again. Maybe I'll start to feel like a normal human being if that's possible. Later, GUN
PS: How's the back doing
 
Glad to hear you doing good. As far as the change over goes, I am one of the 4 that they are keeping. Gonna lose my daytime run but I still have a job though. I was scheduled to return back to work yesterday(Mon) but the return to work note wasn't worded right. So I went to the Dr office Fri after my pt appointment to get that re worded. Just my luck he and his assistant are on Vac..... so still sitting here waiting on a phone call to come pick up my new note... Truck safe
 
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