Is the Roth 401k some new type of plan?

No, it is not a new plan. It is a new designation in your existing 401k plan that went into effect January of 2006. Is was passed into law in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). A 401k can choose to adopt this new designation that would allow you to designate some or all of your contributions as Roth 401k contributions.

Although commonly known as Roth 401k contributions, the IRS calls these designated Roth contributions. Regular 401k contributions are called traditional, pre-tax elective contributions (elective contributions are also referred to as elective deferrals)


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