Roth 401(k)s were created as part of W's 2001 EGTRRA tax package. That
law said that beginning in 2006, employers would have the option of
having 401(k) accounts whose contributions are treated as Roth
contributions (after-tax contributions, tax-free growth and withdrawal).
Employees with the option will be able to choose to save within a
401(k) or the Roth 401(k) or both. You don't get to double up on your
contribution limit, however. The contribution limit applies to the
total that is put into both accounts.

Anyone have an employer that is planning on starting a Roth 401(k) plan
(might be too early in 2005 to know...)?

-Will

Winter wrote:
- quote -

Rich Carreiro <rlcarr[at]animato.arlington.ma.us> writes:
- quote -

According to a mention in an article I read this morning, [1]
Roth 401(k)s were created by the 2001 tax law, but, like
many things, take a while to actually get implemented.
"About 35 percent of employers aim to offer these plans
next year, according to human resources consultancy
Hewitt Associates".

35% sounds like a lot to me, very quickly. But there
you have it.


[1] "How to Pay for it", part of the "Retire Happy"
special feature in the April 2005 SmartMoney mag.

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"Winter" <downeaster1000[at]yahoo.com> writes:

- quote -

I'm pretty sure it's in the tax code and has been for at least a year
or two (if not longer). Talk to your employer about adopting one.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

What is the status of the Roth 401k? Is it definitely coming and only
a matter or time or is it in the proposal stage and needs to be
approved by Congress or what is the review and approval loop?

How would/will the availability of the Roth 401k change the
investing/saving landscape.

Thank you,

Winter