Get the jump on Roth 401(k) plans

[roth401k]

Get the jump on Roth 401(k) plans

By HOLLY NICHOLSON, Correspondent

Q:I've heard that a new retirement plan will be available next year. But when I asked our company human resources representative, she didn't know anything about it.
Will we be able to contribute to the typical 401(k) and a 401(k) that acts like a Roth next year?

A:Now is a good time to learn about this new type of retirement plan, because it can't be offered until next year. You have the remainder of the year to educate yourself, other employees and your human resources department.

The plans are referred to as Roth 401(k)s. Qualified plans may allow participants to make designated Roth account contributions after Dec. 31.

As with most provisions of the tax act of 2001, the plans will expire after 2010 unless Congress extends them......................

ENTIRE ARTICLE HERE


Send questions to Holly Nicholson, CFP, JD, P.O. Box 99466, Raleigh, NC 27624, or go to her Web site, www.askholly.com