Retirement
Roth 401(k) Option
This option allows employees to make after-tax contributions to 401k Roth account. Qualified distributions of Roth 401(k) contributions and earnings are tax-free.
You can make Roth 401(k) after-tax contributions regardless of income. The Internal Revenue code contribution limit applies to the combination of your 401(k) pre-tax and Roth 401(k) after-tax contributions, ($16,500 for 2011, $22,000 for age 50+). Qualified distributions of Roth 401(k) contributions and earnings are tax free if distributions are made:
- after age 59 1/2; death or disability, and
- at least 5 years after first Roth 401(k) contribution
In addition, the Foundations 401(k) Plan will accept Roth 401(k) rollovers; and Roth 401(k) distributions can be rolled into a Roth IRA. However, you cannot roll Roth IRA balances into the 401(k) plan.
View the Roth 401(k) presentation and try the Roth Analyzer to determine if the Roth 401(k) option is right for you.