• New 401(k)/403(b) Plan Design Feature Available for 2006: After-tax Roth Contributions
  • July 14, 2005 | Authors: Richard G. Schwartz; Randell Montellaro
  • Law Firm: Epstein Becker & Green, P.C. - New York Office
  • Beginning in 2006, 401(k) and 403(b) plans will be permitted to offer a new benefit feature to participants -- after-tax "Roth" contributions. These Roth contributions will generally not be taxed upon distribution to the plan participant and, if a five year holding period requirement is met, the earnings on such Roth contributions also will not be taxed when distributed.