Be Patient: Rules on Roth IRA's to Expand New York Times (03/12/02) Vol. 16, No. 3 p.19; Johnston, David Cay
Starting in 2006, employers will be able to offer a new Roth 401(k). Workers will be allowed to have both traditional and Roth 401(k) plans, and will be able to save a combined maximum of $15,000 each year. The significant advantages Roths have over traditional plans are that withdrawals are not required, and investment is made with after-tax dollars. So, after 5 years or more, when the money is withdrawn, the distributions will be tax-free.