Monday, 16 May 2011

What is the tax deduction for Roth 401k ?

A Roth 410k allows you to fund your account with  after tax money, so any money you earn today is taxed, then when you put it into the Roth 401k, further withdrawals from this account when the time comes are not taxed.

To summarise you will not have to pay any further taxes on withdrawals from this plan, so any further tax that would have been produced from this is now earning interest in the account.

Roth 401k contribution limits:

calender year 2010   $16,500

calender year 2011    $17,000

Projected contribution limits:  -this is an estimate of what it may be in the future so are not accurate

calender year 2012   $17,500

calender year 2013    $18,000

1 comment:

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