Five Favorite 401k Features We Can’t Live Without
Of Counsel Michelle Capezza spoke to Fiduciary News about the tax advantages that result from 401K plans. Michelle said, "The ability to make pre-tax salary deferral contributions to a defined contribution retirement plan such as a 401k plan, that can grow tax-deferred, is a key feature of today’s plans." She continued, "There are many other ways to invest money on a post-tax basis. The ability to save on a pre-tax basis and defer tax on earnings is what makes contributing to a retirement plan attractive. The SECURE 2.0 Act’s requirement for certain highly compensated employees to make catch-up contributions in the form of Roth contributions is troubling."
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