With Nancy Gerrie, Nancy Gerrie, Paul Hamburger PC, Paul Hamburger PC, Paul Hamburger PC, Paul Hamburger PC
On December 30, 2005, the U.S. Internal Revenue Service (IRS) issued final regulations providing guidance on designated Roth (Roth 401(k)) contributions under section 402A of the Internal Revenue Code. The basic appeal of Roth 401(k)s is the same as for Roth IRAs—when future qualified distributions are made, they are tax-free, and earnings on the original contributions are tax-free as well.