For Subscribers

Buzz 10/05 Overpaying on hotel stays, earning less if you're unattractive and more

By Jennifer Pellet

Opinions expressed by Entrepreneur contributors are their own.

Fans of the Roth IRA may want to think about acting on aprovision in the Economic Growth and Tax Relief Reconciliation Actof 2001 that lets employers offer employees a similarretirement-savings vehicle within their 401(k) plans beginning in2006.

As with a Roth IRA, a Roth 401(k) enables taxpayers tocontribute after-tax retirement savings that then grow and aredisbursed, tax-free, in retirement. Open to taxpayers at all incomelevels, Roth 401(k)s can be a powerful retirement tool for businessowners and employee participants, who are able to direct up to$15,000 into any combination of a regular 401(k) and the Roth401(k).

But they're not appropriate for everyone, cautions LawrenceMacklin, wealth strategist with The Private Bank of Bank ofAmerica. "Participants who are in low tax brackets currently,but who expect to be taxed at a higher rate in retirement, wouldlikely be better off in the Roth 401(k). But high-incomeindividuals paying the highest tax rates might be better off withthe regular 401(k) to benefit from a current tax deduction at thehigh rates."

Two further caveats may also hamper adoption. First, as fundscannot be mingled, managing Roth and traditional 401(k) accountswill add to an employer's administrative responsibilities.Also, since Roth 401(k) plans--along with other provisions calledfor in the EGTRRA--currently expire at the end of 2010, employersincur those costs with only four years of availability assured.

Jennifer Pellet is a New York City freelance writerspecializing in business and finance.

In 2004, Americanbusinesses overpaid on hotel stays by more than
$1.8 million
every day.
Statistic Source:Corporate Lodging Consultants

On average, a worker with below-average looks earns
9%
less per hour than an employee with above-average looks.

Statistic Source:Federal Reserve Bank of St. Louis

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Productivity

6 Habits That Help Successful People Maximize Their Time

There aren't enough hours in the day, but these tips will make them feel slightly more productive.

Leadership

5 Lessons I Wish I Didn't Learn the Hard Way During My 20 Years in Business

Starting a business has been one of the most exciting and fulfilling chapters of my life — but it's also been unpredictable, humbling and often much harder than it looks from the outside. Here are a few pieces of hard-earned wisdom I wish I'd known from day one.

Devices

Boost Office Output with This 27″ 4K Monitor Deal

Upgrade your team's workspace and boost employee performance with $60 off a 27" 4K monitor.

Business News

Elon Musk Gives One-Sentence Response to Linda Yaccarino Stepping Down as CEO of X

Linda Yaccarino announced on Tuesday that she was leaving her role as X's chief executive.

Health & Wellness

How Do You Build Culture Working Fully Remote? Start By Trying This One Thing.

Get practical advice from Dr. Drew and serial investor Kim Perell on this episode of Entrepreneur Therapy, featuring HigherDOSE co-founder Katie Kaps.

Marketing

5 Ways to Spot Trends Before They Explode — and Turn Them Into Growth

While you're reading this, someone else is already launching the next trend — and quietly taking your market share.