Ford Motor Company will introduce a Roth option to the 401(k) plan next year. With the addition of this feature, employees will have the flexibility to direct contributions among both types of 401(k) accounts as their current and future tax situation dictates. It will also provide employees with the ability to “tax diversify” their income sources for retirement. Additionally, for those Ford employees who are ineligible for a Roth IRA due to income limitations, a Roth 401(k) provides an opportunity to build a tax-free retirement income source.
For more information on the Roth 401(k) account, you can review our list of “Roth 401(k) - Frequently Asked Questions” or request a FREE copy of Mainstay Capital Management’s “Roth 401(k) Investment Guide”. If you have questions on how this new Roth 401(k) option may be best utilized in your personal situation, feel free to contact us toll-free at 1‑866‑444‑6246.