Quote:
Originally Posted by linehaul  you can open a roth IRA on your own without the company........the roth is way better than a 401k....its better to pay taxes on a 100 dollars a week going in than pay taxes on hundreds of thousands when you take it out...... |
You are limited to $4000 a year with the Roth IRA and I agree with you that its more beneficial. The Roth 401k, as they call it, just allows you to designate a portion of your 401k as a Roth portion which is taxed beforehand but not when you withdraw at retirement. They still allow you to put up to $15000 a year like the normal 401k rules. This is why it would be so beneficial. You could have $15000 a year earning tax free capital gains along with the $4000 a year in the normal Roth IRA. They need to change it.