Roth 401(k) Knowledgebase

Comparison of Plans - Advantages / Disadvantages

Advantage / Disadvantage	Pre-tax 401(k)	Roth 401(k)
Ease of Administration	Advantage	Disadvantage
Ease of Employee Communication	Advantage	Disadvantage
Tax Rate Decreases at Retirement	Advantage	Disadvantage
Tax Rate Unchanged at Retirement	Neutral	Neutral
Tax Rate Increases at Retirement	Disadvantage	Advantage
Highest Permissible Contribution	Disadvantage	Advantage
Tax Risk Diversification	Disadvantage	Advantage
Postpone Distribution until Death	Disadvantage	Advantage