Key Points:
- Introduction:
- John Sullivan, a 401k specialist, interviews Jeanne Fisher from ARGI Financial Group at the Excel 401k 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 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.
