One provision of the Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA") that had a delayed implementation date is the provision for Roth 401(k) contributions. (Technically, Roth contributions may be made to 403(b) annuity plans as well. In the remainder of this Alert, however, we will refer only to the far more widespread 401(k) plans.) The Internal Revenue Service ("IRS") recently issued proposed regulations addressing Roth 401(k) contributions, which are scheduled to become effective January 1, 2006, for calendar year plans.

A Roth 401(k) contribution is an after-tax elective contribution made by a participant to a 401(k) plan. The participant may irrevocably designate part or all of such 401(k) elective contribution as a taxable Roth 401(k) contribution. The employee will be taxed on the Roth 401(k) contribution in the year the elective deferral is made....

This service is completely FREE but for the full article and thousands of other articles from 100+ countries please tell us about yourself by registering (and yes, our lawyers like to think you've read our Disclaimer). It only takes 30 seconds and as well as great content you get articles more relevant to you and other advanced features like an optional personalised once-weekly news alert and forward-to-colleague capabilities. We'll also remember your details so you don't have to login again - if you've registered before please login here or if you've forgotten your username click here and we'll remind you. We appreciate your time is important and will respect your privacy - THANK YOU for registering.

Specific Questions relating to this article should be addressed directly to the author.

Do you have a question for the author?