IRS Issues More Regulations Pertaining to Designated Roth Accounts

Hot off the press–proposed regulations providing “comprehensive guidance on the taxation of distributions from designated Roth accounts under section 401(k) and section 403(b) plans.” The provisions of the final section 401(k) regulations regarding designated Roth contributions which were issued on January 3, 2006, did not address the taxability of distributions from designated Roth accounts or the reporting requirements that apply to contributions of designated Roth contributions or distributions from the accounts. These proposed regulations address those issues. In addition, they also provide guidance with respect to designated Roth contributions under section 403(b) plans by amending the proposed section 403(b) regulations issued in 2004 to reflect the provisions of section 402A.