Posted: Thu Jan 26, 2006 2:29 pm Post subject: Traditoiinal Roth vs. new Roth 401k
You mentioned the difference in a 401k & the new Roth 401k, but what's the diff. in the traditional Roth vs the new Roth 401k.
Lisa Guest
Posted: Thu Jan 26, 2006 3:17 pm Post subject:
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.)
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