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Roth 401(k) Starting January 1

USA Today provides info on these new plans.

Most companies aren't ready to offer the plans right away.   That gives you time to learn more about these plans and whether they're a good choice for you.

Here are some answers to questions about Roth 401(k)s:

How much can I save? The maximum contribution levels are the same for traditional and Roth 401(k) plans.

In 2006, workers under age 50 can contribute up to $15,000 to a 401(k) plan. Workers age 50 and over can contribute up to $20,000 next year.

Can I invest in a regular 401(k) and a Roth 401(k)? Yes, as long as you don't exceed the contribution limit. For example, you could contribute $7,500 to a regular 401(k) and $7,500 to a Roth 401(k).

Posted on Friday, December 9 by Registered CommenterWise Owl in | Comments Off