FROM THE OFFICE OF PUBLIC AFFAIRS To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®. March 2, 2005 Treasury and IRS Issue Proposed rules for
WASHINGTON, DC -- The Department of Treasury and IRS today announced proposed regulations regarding designated Roth contributions to 401(k) plans. Roth contributions, which were created in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), will allow for employees to designate all or a portion of their 401(k) employee deferrals on an after-tax basis. Most distributions of the amount contributed as well as any earnings on those contributions will be tax-free. Although Roth contributions are not effective until taxable years beginning after Similar rules will apply to Roth contributions available under 403(b) plans sponsored by tax exempt organizations and public schools.
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