New Roth 401(k) plan.
Position | News & Trends |
Starting Jan. 1, 2006, employers can offer Roth 401(k) plans, which combine features of the traditional 401(k) with those of the Roth IRA.
Like traditional 401(k) plans, Roth 401(k) contributions are taken out of a participant's paycheck and deposited into selected investment options. However, contributions to Roth 401(k)s will be made with after-tax dollars.
While there is no upfront tax deduction, the account will grow tax-free and withdrawals will be tax-free provided they are...
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