Nonprofit Blog

While most Americans are fairly well-versed in Roth IRAs – a retirement vehicle in play since 1997 – fewer are as familiar with the Roth 401(k). In essence, the Roth 401(k), an employer-sponsored investment savings plan, combines advantageous features of the Roth IRA and a traditional 401(k) plan. More than 60 percent of employers now offer this retirement savings plan option.

The federal government continues to tout the Roth 401(k) plan that combines some of the benefits of a traditional 401(k) plan with a Roth IRA. Typically, an employer will add this feature to an existing 401(k) plan. Now the IRS has issued a new notice governing in-house rollovers to a Roth 401(k).