Employers who want to help their employees improve retirementsavings are missing out on a big chance to do so: Roth 401(k)s.
That’s according to consultant Willis Towers Watson, which saidthat employers aren’t educating their employees on the benefits ofRoth 401(k)s—which it says can be one of the most tax-effectiveways for employees to save for retirement.
Employees can benefit from such accounts for a number ofreasons. Roth 401(k) contributions are made with aftertax dollars,resulting in tax-free withdrawals at retirement. In addition,contributions to a Roth account can provide retirees taxdiversification when they start to draw on pensions, employer-matchcontributions from regular 401(k) plans and other taxable formsof income.
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