Roth 401(k) Questions
(This came to me from a HR Manager of a mid-size company - Steve)
We're looking at adding a Roth 401(k) option to our 401(k) Plan. This is pretty new to us. Has anyone done this yet? How has it gone and are your employees using it?
We want to get some feedback and I appreciate any insights people have so we are informed from practitioners and not just brokers.
Thanks
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We offer a roth option and have had good participation. One thing that has beneficial has been ongoing education around the benefits of Roth and why it can be beneficial. Happy to discuss more.
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Roth is a great option if people can see what the difference is and the difference in impact it has in the long run. We have seen when arming the employee with the right information they are empowered to make a better decision for their financial futures.
As Jessica eluded to continuous education is critical.
People need more than just the vehicle though, they need to understand how to put the best engine in it. They need a copilot to walk with them through the journey not a 1800 number and not Tik Tok...
Here are some other things to consider.
- 1 on 1 Advisory services
- Outreach to include the family (money is a family matter not just the employee)
- An understanding of other areas of finance that may be burdening them like debt, insurances, legal protection, ID Theft....
Happy to share information if anyone needs.
