October 5th, 2006 Paychex Offers Roth 401k Retirement Savings Option
Paychex Inc., one of the largest payroll, human resources and business solutions company in USA has added the Roth 401k option to its fleet of 401k retirement services. Introduced by the Economic Growth and Tax Reconciliation Act of 2001, the Roth 401k Option is meant to encourage more small to medium sized businesses to enroll their employees in 401k retirement plans. Contributions to the Roth 401k are made in after-tax dollars and withdrawals are tax-free (upon retirement).
Pre-tax contributions are also possible with this Roth 401k option. You pay pre-tax dollars now and upon retirement (when you withdraw your 401k savings), you will be assessed a tax then. Tony Tortorella, VP of Paychex Human Resource Services quotes, "The Roth 401k may be the right savings vehicle for newly hired and younger workers who are in a lower tax bracket now, but expect their income and tax burden to grow as their career progresses. The Roth may also be a good fit for highly paid workers who want to manage their tax burden in retirement. For employers looking to add the Roth 401k feature to their plans, Paychex 401k Recordkeeping service seamlessly handles the integration between payroll and 401k deductions."
Those choosing to enroll with Paychex Roth 401k Option can contribute a maximum of $15000 in the year 2006 towards their 401k retirement savings. People over the age of 50 can contribute an additional $5000 in 2006. This is what's known as 401k Catch-Up contributions. A further advantage in contributing towards a Roth 401k plan is that there are no income restrictions for people making 401k contributions, while there are income restrictions in traditional 401k retirement plans.
The Roth 401k Option offered by Paychex can be accessed at the company's website, http://www.paychex.com
Paychex Inc. Brief Profile
Paychex Inc. is one of the largest 401k retirement services providers that offers small to medium sized businesses solutions to encourage and enroll their employees in 401k retirement plans. Other services provided include payroll, business solutions and human resources. With more than 100 offices across America and headquartered in Rochester, New York, Paychex Inc. serves over 543,000 payroll clients across the country.