Some plan participants may use non-hardship 401(k) withdrawals to invest in individual retirement accounts.
The new federal tax law expands the use of Roth IRAs in retirement plans, opening the door for tax diversification. Roth savings accounts were introduced to 401(k) plans by the Economic Growth and Tax Relief Reconciliation Act of 2001. This law allowed for the designation of a Roth 401(k) plan beginning in 2006. These plans