Date: Wed, 1 Feb 2006 14:51:53 -0600
From: rshekhtm@gmail.com
Newsgroups: misc.invest.financial-plan
Subject: Roth 401(k) - what happens if it goes away?
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Hello,

My company has started offering the new Roth 401(k) retirement plan and
having considered the pros and cons of Roth 401(k) vs regular 401(k), I
decided to go with Roth. Since there is a possibility that Roth
401(k)'s will go away in 2010, I'd like to develop a plan of action in
case that does happen.

1. If I understand the provisions correctly, I'll be able to leave my
money in that Roth 401(k) account until I'm eligible to withdraw it,
but without the ability to contribute. In this case, my only option
would be to start contributing to a regular 401(k) account, correct?

2. On the other hand, I could theoretically roll the funds over into a
Roth IRA. I see this touted as a great feature of the Roth 401(k),
however there might be a slight problem. Unless I'm mistaken, the Roth
IRA prohibits rollovers from persons with some high adjusted gross
income ($110K?). Assuming my AGI in 2010 does exceed that limit (hey, I
can dream!), does that mean I won't be able to roll over the Roth
401(k) into the Roth IRA? That's rather unfortunate..

3. A follow-up question. Let's say the money ended up staying in my
company's Roth 401(k) plan and in 2011 I decide to leave. Roth 401(k)'s
are no longer offered, so I can't trasfer the funds to the new
employer. I also can't roll over into a Roth IRA (presumably). Is my
retirement money stuck with the old employer and whatever limited funds
they provide forever? That's a scary proposition as well!

Thank you for your help!
-Roman