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| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1527 |
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BLC has the choice of a Roth Contribution 401(k) plan and a traditional 401(k) plan. The difference between the traditional 401(k) plan and the Roth Contribution 401(k) plan the way the plan is taxed. A traditional 401(k) plan contribution is taxed after distributions. The Roth Contribution 401(k) plan, on the other hand, is taxed prior to contributions...
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The Roth Contribution 401(k) plan, on the other hand, is taxed prior to contributions. If BLC considers both plans, they must provide for this option with the Roth Contribution 401(k) plan. Also, the income or earnings from the investments in these plans are not taxable (irs.gov). The ceiling for annual contributions for an employee under 50 years of age is $15,500 ($20,500 for those 50 and over) for 2008 and $500 each year thereafter (Qualified Plan Administrators, Inc...
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