Roth 401[K] Law and Legal Definition
Roth 401(K) is a type of retirement savings plan. It is a unique combination of the features of the Roth IRA and the traditional 401(K) plan. Under the Roth (K) plan the employees can decide to contribute fund on a post-tax elective deferral basis.
Roth 401(K) contributions are irrevocable, but upon retirement of the employee s/he can roll the contribution over to the Roth IRA account.
The plan will be made available only after December 31, 2010.