Josh Scandlen Podcast

Even Jeff Bezos Should Have a Roth 401k Another benefit of the Roth is one many overlook.  This is the ability to fund a Roth 401k regardless of your income. High income earners, even millionaires, can fund a Roth 401k if their plan offers it.  I know many of you are reading this and saying “Josh, you’ve really lost it now. Why on earth would a high-income earner want to fund a Roth with after-tax money when she is in a high tax bracket?” To which I say “Even after reading this far in this book you still doubt the power of the Roth?” First, let me explain the basics of a 401k plan. There are three parts: Elective deferrals Employer contributions Profit sharing   Elective deferrals are the money you choose to forgo from your paycheck in order for it to go into your retirement account.  You have one of two choices for where to put this money, the tax-deferred, i.e., the Traditional 401k or the tax free, the Roth 401k.  The money you contribute to the Traditional side reduces your