Contributions to and Distributions from Roth 401(k) - Jan 26

[roth401k]

Treasury and IRS Issue Proposed Regulations for Contributions to and Distributions from Roth 401(k) and 403(b) Plans

January 26, 2006

On January 25, 2006, the Treasury and the IRS issued the proposed regulations under IRC §§402(g), 402A, 403(b), and 408A relating to designated Roth accounts. The proposed regulations impact employer/plan sponsors, participants and beneficiaries in both 401(k) and 403(b) plans, and trustees, owners and beneficiaries of Roth IRAs.

The proposed regulations under IRC §402A intend to provide comprehensive guidance on the taxation of contributions and distributions to and from Roth 401(k) and 403(b) accounts along with the requisite recordkeeping and reporting requirements for these actions. The proposed regulations also include...

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