Regulatory Call for Comment:
Designated Roth Contributions to 401(k) Plans

May 2, 2005

CUNA has posted a Comment Call regarding the newly proposed Internal Revenue Service (IRS) regulations regarding designated Roth contributions to cash or deferred arrangements. Under the proposal, beginning in 2006, a 401(k) plan may permit an employee who makes elective contributions under a qualified cash or deferred arrangement to designate some or all of those contributions as Roth contributions. Although the Roth contributions could be included in employees' gross incomes, the plans' distributions would be tax-free. These proposed regulations implement Section 402A of the Internal Revenue Code, which was added by the Economic Growth and Tax Relief Reconciliation Act of 2001. Please send your comments to CUNA by May 20, 2005. Click here for CUNA's comment call with additional information.