Comments about ‘Consumers will soon be able to switch from a regular 401(k) to a Roth 401(k)’

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Published: Friday, May 3 2013 7:50 a.m. MDT

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Orem, UT

roth 401(k) do have a penalty for early withdrawal--you have to pay "normal income tax" on the growth from your fund (ex: if you put in 90% and it has grown by 10%, you'll pay income tax on the 10%). If you with withdraw after 59.5 you don't have to pay income tax on the growth.

Cinci Man

This was a pretty lame article. It explains absolutely nothing about how the switch works. Thanks for the worthless article. I read it thinking I would learn something, but nope...

Plano, TX

roth 401K you can withdraw your contribution amount without penalty at any age. If you withdraw enough that you hit the gains, you pay a 10% penalty on that portion which is gain, plus income tax on it. After the day when you turn 59 1/2, literally - not just the year in which it happens... those two items go away and it's all tax free withdrawal - contribution and gain. That's different than the 70 1/2 rule on IRA's where you must start taking distributions - that is the end of the year in which you reach the age - BIG difference.

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