OppenheimerFunds is adding a Roth option for its 410(k) and 403(b) retirement programs, effective Jan. 1, the company announced this week.
"The new Roth savings option offers advantages to a broad spectrum of employees, including younger workers, high-income earners, dual-income couples and investors with large accumulations of tax-deferred and taxable assets," said John Stoma, senior vice president, director of retirement plans at OppenheimerFunds. "We are committed to providing financial advisers, plans sponsors and participants the tools necessary to maximize workplace savings opportunities to help plan for a comfortable retirement. We firmly believe that the Roth option can offer significant advantages for certain segments of the employee population."
OppenheimerFunds noted that Roth defined contribution plans don't impose any income restrictions on who can participate and may appeal to investors who expect their income taxes to rise in years ahead. In addition, to support the new options, the firm has developed a series of educational materials for advisers, sponsors and participants.