Tag: roth
Simple model suggests more saving, but real world frictions likely to produce less saving. For the record, we would not be discussing shifting from traditional to Roth 401(k)s except that Congress is looking for additional revenue to offset its proposed tax cuts over the next 10 years, the timeframe used for considering legislation. As background,…
Shift to Roth accounts could pay for tax cuts – at least in the short run. “Word has it” that the Congress will be looking for revenues to finance tax cuts and that one possibility would be to shift IRAs and 401(k) plans from the traditional form to a Roth. Contributions to a traditional 401(k)…
