Posted on: 18th Nov, 2005 01:23 am
I want to know about Roth 401(k). What is it?
Fizz
Fizz
Hi,
I think the difference is that Roth 401(k) accounts will be subject to the contribution limits of regular 401(k)s — $15,000 for 2006, or $20,000 for those 50 or older by the end of the year — allowing savings more in tax-free retirement income than they would through a traditional Roth IRA. (In 2006, Roth IRA contributions are limited to $4,000 a year, or $5,000 for those 50 or older.)
I think the difference is that Roth 401(k) accounts will be subject to the contribution limits of regular 401(k)s — $15,000 for 2006, or $20,000 for those 50 or older by the end of the year — allowing savings more in tax-free retirement income than they would through a traditional Roth IRA. (In 2006, Roth IRA contributions are limited to $4,000 a year, or $5,000 for those 50 or older.)
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