HSBC Bank USA has announced that its retirement financial services department now offers Roth 401(k) administration to its business clients.
Similar to the better-known Roth IRA, a Roth 401(k) is a new retirement investment option that can be offered through plan sponsors such as employers. Passed by Congress in 2001 but not effective until this year, it allows plan participants to make after-tax contributions to their 401(k) plan, and receive those contributions and any earnings on their money tax-free when they retire.
The bank provides its business clients with a range of communication materials to explain the plan to both sponsors and participants, and also offers seminars to teach employers more about the new option.
HSBC already administers 401(k), pension and other retirement solutions for commercial, corporate and institutional clients in the United States and abroad. The company handles more than 245,000 pension plans worldwide, covering 2.4 million employees.