Jay Sachetti joined Jeff O’Brien, partner at Husch Blackwell and Dyanne Ross-Hanson, president of Exit Planning Strategies talked about the market for mergers and acquisitions, exit planning opportunities for companies that don’t end up for sale and how companies can maximize their eventual sale price during an early October panel at the first Upsize on Tap event at Summit Brewing Co. in St. Paul.
When the state Legislature passed a law requiring employers to provide paid leave and safe time for employees, Justin Bieganek started hearing differing details from friends, colleagues and peers.
The new Roth 401(k) has people in the employee benefits business talking. Authorized by Congress in 2001, but scheduled to start Jan. 1, 2006, it works like a traditional 401(k) but money goes in after-tax, not pre-tax.
“When you take the money out you do not have to pay income taxes on it,” explains Nicole Middendorf of Strategic Financial in Plymouth. In that way it mimics the Roth IRA, which she calls “very popular” among her clients.
But it does not have the income requirements of a Roth IRA (a single person making over $110,000 is not eligible) nor the low contribution limit ($4,000 per year in 2005.) If your company offers it, employees could put up to $15,000 next year into the Roth 401(k).
Middendorf says companies are considering adding the Roth 401(k) to their offerings even though it will add some costs, both for administrative fees and for educating employees. “It’s something new and people really like the Roth,” she says.
Nicole Middendorf, Strategic Financial: 763.208.0482; ni***************@*pl.com; www.helpingyouinvest.com
