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A designated Roth account is a separate account under 401(k), 403(b) or governmental 457(b) plans:
- to which designated Roth contributions are made, and
- for which separate accounting of contributions, gains and losses is maintained.
An advantage of a designated Roth account is that you pay tax on your contributions now, but later, when you receive a qualified distribution from the account, it is tax-free. Less tax on your plan distributions could mean more money in your pocket during your retirement.
This Checklist isn't a complete description of all plan requirements, and shouldn't be used as a substitute for a complete plan review.
Americans are saving more, just not in their employer-sponsored retirement plans, according to a new analysis by retirement market researcher Hearts & Wallets.