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Author: dennisaschmidt Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76384  
Subject: EGTRRA and this new "Roth-Like Account" Date: 6/21/2001 6:01 PM
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I read the Pixy article "Even More Money for Your Retirement", there is mention of an after tax 401k contribution...

"Starting in 2006, 401(k) and 403(b) plans may allow participants to make after-tax contributions to a Roth IRA-like account under separate plan-accounting procedures. These after-tax contributions and all earnings therein will not be taxed on withdrawal provided the account is open for at least five tax years and the participant is age 59 1/2 or older at the time of the distribution. "

From purely a retirement after-tax contributions perspective, does this essentially erase the contribution limit on Roth IRAs? Obviously, the investment vehicles would not be the same hence there will be different ways you are allowed to manage that money. Does this mean that in 2006 we will be able to contribute potentially 100% of our earned income into a "Roth-Like" account (if, of course, your employer offers such a plan), no matter what our salary is?!! If this is true, would there be any reasons left to contribute to a Roth IRA versus the new "Roth-Like Account?"

Great Article!
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