New option for saving toward retirement

TULSA - It's part of the moves made by Congress to avoid the fiscal cliff.

People can choose to pay income tax on retirement money now and draw it out tax free in retirement.

You need to check with your employer; ask about the Roth 401k conversion option.

Also check with your CPA or financial advisor.

One Tulsa CPA says it looks like a better deal for the government than for investors.

If you pay those taxes into government coffers, now those are dollars that could be growing for your retirement.    

Our tax expert also points out a benefit for Oklahomans:  The state  allows retirees to withdraw $10,000 a year, tax free, from any retirement account.   You're still on the hook for federal taxes.

If you like the idea of getting the unpleasant tax burden out of the way, now, or want to leave all of your money to your heirs tax-free the Roth 401k conversion option could be for you.

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