When orange juice was on sale, my father in law would buy a few cartons and would proclaim “we’re pushing orange juice this week”.
If you’re in the retirement plan business, you might be considering pushing Roth 401(k)s this week.
The budget legislation passed by Congress to avoid going over the fiscal cliff Jan. 1 lets 401(k) participants to convert any money in their tax-deferred accounts to a so-called Roth 401(k) account, if their employer offers one, which can be withdrawn tax-free in retirement. The change is projected to raise $12.2 billion in revenue over 10 years because those who convert will pay taxes now and enjoy tax free retirement savings later.
If you are a financial advisor or a third party administrator, consider looking at clients who don’t have the Roth 401(k) option and having conversations about the conversion opportunity with those who do have it.