What is the impact on Social Security benefits?
Another very important point is that distributions from your Roth Account will help avoid tax on your Social Security benefits. Social Security Benefits are taxable if other taxable income, plus 50 percent of the Social Security benefit exceeds $25,000 (single) or $32,000 (joint). Other taxable income includes any taxable distributions from your 401(k) plan. Since Roth distributions are not taxable, they are not included in this calculation. What else should I know about the Roth account? In most ways the Roth account is the same as the pre-tax account. Employer matching contribution may be made on Roth 401(k) contributions; Roth 401(k) accounts are 100 percent vested; a separate account must be maintained for the Roth 401(k) contributions; and loans may be taken from the Roth account, if permitted by the plan. Roth 401(k) distributions can be rolled over to a Roth IRA (no income limits apply). Unlike traditional IRAs, Roth IRAs do not have a required distribution at age 70 1/2. Who mi
