New Roth 401(k): Reality?

[Guest JMD]

How much can a person contribute into the new Roth 401(k) in 2001 if the bill (H.R. 10) is passed by Congress?

Will the contribution be tax deductible?

What are the advantages and disadvantages of the new Roth 401(k) compared to the Roth IRA and the 401(k)?

Thanks. JMD.

[John G]

Too soon to know what will result from the various proposals. Tax issues are in a high state of flux and you should expect a lot of compromises. Hopefully Congress will not slap together a bad package in their rush to get something passed. What appears to be inevitable is that IRA limits will eventually move beyond 2k. This adjustment has been talked about for a few years and been either in bills or amendments. Eventually it will pass, if not this year, soon. You might want to write your Congressional reps and let them know of your interest.