My employer offers and after tax savings account. Is this a good mechanism to save for retirement?
Thanks

Zip Code: 19106

Contributing to a 401(k) or a 403(b) plan at work is one of the best tax shelters available to you during your working years. With the tradition version of these retirement savings accounts, the money you contribute reduces your taxable earnings and will be taxes when you take the money out upon retirement.

With the Roth version, you forego a current year tax break in exchange for a promise from the government that this money won't be taxed when you retire.

This year, you can make salary deferrals of up to $16.5k into your employer's plan. For starters, you can't go wrong by contributing to either version of this plan.

Even so, I'm not a huge fan of the Roth version of the 401(k) or 403(b) for people in the higher tax brackets because I don't trust the government to not change the rules down the road. You can read my article, A Rant About Roths, at: http://www.mdtaxes.com/news0408.html#1.

Zip Code: 01801