Key Points:
- Introduction:
- John Sullivan, a 401(k) Specialist, interviews Jeanne Fisher from ARGI Financial Group at the Excel 401(k) conference in Las Vegas.
- Discussion on Roth IRAs:
- Importance of Roth IRAs: Jeanne emphasizes the underestimated value of Roth IRAs, especially for younger individuals and those with lower incomes.
- Current Relevance: Given the potential changes in pre-tax deferral limits in the tax reform act, it is a timely discussion.
- Adoption in Practice: Jeanne notes the growth in Roth deferrals within their practice and the emphasis on education and tracking participant deferrals.
- Challenges in Adoption:
- Lack of Education: A significant barrier to the adoption of Roth IRAs is the lack of education.
- Misconceptions: Misconceptions perpetuated by the accounting industry, focusing on immediate tax savings rather than long-term tax-free growth.
- Conclusion:
- Jeanne highlights the ongoing efforts to educate participants about the benefits of Roth IRAs.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of 401(k) Specialist and Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots. Experienced financial services content executive specializing in creative new media delivery. He joined the American Retirement Association in 2023 as Chief Content Officer, overseeing communications for the organization, as well as its sister organizations.
