IRAs (Individual Retirement Accounts)

Roth IRA and 401(k)

Before the introduction of the Roth IRA, it was a fairly easy and straightforward decision-making process when deciding where to save money for retirement. If you had access to a 401(k) plan, it was always most beneficial to save the maximum pre-tax amount. After-tax contributions to a 401(k) plan were recommended if you had more money to save and did not qualify to make a deductible IRA contribution. These strategies were suggested regardless of whether you received a company matching contribution.

Now, with the Roth IRA and the current IRA deductibility rules, the decision is not so cut-and-dry. As you read through, it is more important than ever before for you to evaluate the other options available to you in saving for retirement and compare them to saving in your company's 401(k) plan.

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*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a Registered Broker-dealer (Member FINRA/SIPC) and SEC-registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. General Electric Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.