[IASHRM] Roth 401k

[Sue Whitesell]

We just added the Roth option to our 401(k) plan in April of this year, along with the traditional plan.  We had individual meetings with anyone who was interested.  Only a handful of our employees elected the Roth option.  I think they have trouble picking the future benefit over the current tax benefit on their paychecks.  We will do more education over the next year and expect to increase that number.

It has not been a problem to administer once we got our program set up.  The match still goes into a tax-deferred account.

Good luck,




Susan Whitesell
Chief Financial Officer
Western Home Communities
Phone: (319) 277-2141
Fax: (319) 268-2205

>>> "Michal Sigel" <msigel at augusthome.com> 8/29/2006 4:53 PM >>>
Hello,
 
Is anyone or has anyone adopted the Roth 401(k)?  I'm curious to know
if anyone has gone this route, or is considering going this route this
year.  What has your experience been?  How is it to administer?  Do
employees understand the after-tax option?  Have people taken advantage
of the after-tax option?
 
If you've decided not to, why not?
 
I would appreciate hearing what you have to say. Nationally employers
are being very slow to adopt.  So I'm wondering what's on people's minds
about this.
 
Thanks!
Michal
 
 
Michal Sigel
Professional Development Director
August Home Publishing
2200 Grand Avenue
Des Moines, IA 50312
515-875-7474