NYLIM Prepares for Roth 401k

November 28, 2005 (PLANSPONSOR.com) - New York Life Investment Management LLC (NYLIM) Retirement Plan Services has prepared educational materials for the Roth 401(k).

For participants, NYLIM has a flyer entitled “Is a Roth 401(k) Right for You?”   The flyer gives four scenarios a participant might fall into and gives the benefits as well as the downsides of a Roth 401(k) for that scenario.

The scenarios include:

  • A New Saver, Single, in Their 20s, Annual Salary of $35,000 (25% tax bracket)
  • A More Experienced Saver, Age 40, Single, Annual Salary of $100,000 (28% tax bracket)
  • Saver Nearing Retirement, Age 60, Single or Married, Annual Salary of $200,000 (33% tax bracket)
  • Saver Expecting to Be in a Lower Tax Bracket in Retirement

According to the flyer, the saver expecting to be in a lower tax bracket in retirement would not benefit from a Roth 401(k).

Plan sponsors will be able to offer the Roth 401(k) option as of January 1, 2006.

More information about NYLIM Retirement Plan Services can be found at www.nylim.com/retirement .