In partnership with Pearson Global WELL and to better position Pearson employees for an even stronger financial future, a Roth feature will be added to the 401(k) plan beginning in February 2022.
A Roth 401(k) allows you to make after-tax contributions and take tax-free withdrawals when you retire. No other income taxes are owed on your contributions or on any earnings. Advantages of a Roth 401(k) include:
- Unlike a traditional 401(k), there are no income limits on the Roth 401(k)
- Qualified withdrawals are tax-free
- Your earnings grow tax free.
In addition, non-Roth after tax savings will be available.
Educational webinars will be held throughout the month of February, and you will have the ability to model various contribution scenarios through online tools to help you decide if participating in the Roth 401(k) is right for you. Stay tuned for more information after the new year.