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Investing/Strategies / Retirement Investing
|Subject: Re: 401k Roth and regular Roth||Date: 8/21/2007 6:21 PM|
|Author: Rebel702||Number: 58953 of 74423|
While the replies you have received are correct, they may be confusing you with differing terminology.
A Roth 401K is subject to the 401K contribution annual limits. Contributions within the 401K are called designated Roth contributions. You can split your total 401K contribution limits between pretax 401K or Roth 401K contributions. The designated Roth 401K contributions will be taxable income but all future returns upon distribution will be non-taxable.
Are there any limits as to how much I may contribute to my designated Roth account?
Yes, the combined amount contributed to all designated Roth accounts and traditional, pre-tax accounts in any one year for any individual is limited by the 402(g) limit - $15,000 for 2006 ($15,500 in 2007 plus an additional $5,000 in catch-up contributions if age 50 or older).
The Roth IRA contribution is a separate limit and does not consider any amount designated as Roth 401K within your employer plan. Roth IRA qualifications do apply as the previous responses have indicated.
This additional IRS link will provide some Q&A information regarding your Roth 401K.
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