This BankRate.com article on Roth 401(k)s reminded me of the newest retirement savings option available beginning January 1, 2006, if your employer decides to offer it. As BankRate.com notes, some of the rules are still being finalized. Here are some of the highlights, so far:

• Like the Roth IRA, contributions to the Roth 401(k) account will be made with after-tax money, but the growth will never be taxed.
• One can contribute up to $15,000 per year to a Roth 401(k), which is much better than the current $4,000 Roth IRA limit.
• Anyone who qualifies for a regular 401(k) can contribute to a Roth 401(k). This is better for higher paid workers who exceed the Roth IRA earnings limits.

And the lowlights:

• If your employer gives a matching contribution, it will only go towards the regular 401(k).
• Since the plan is employer sponsored, you have to stick with their choices.

I definitely hope my employer will offer the Roth 401(k), we'll see.

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