Nonprofit Blog

While most Americans are fairly well-versed in Roth IRAs – a retirement vehicle in play since 1997 – fewer are as familiar with the Roth 401(k). In essence, the Roth 401(k), an employer-sponsored investment savings plan, combines advantageous features of the Roth IRA and a traditional 401(k) plan. More than 60 percent of employers now offer this retirement savings plan option.

Many people collect “orphan” 401(k) plan balances as they move from job to job. Why should employers care? Helping new employees roll over their accounts from former employers can be beneficial for both parties. The same is true of assisting former participants (who have left your business).