This new 401(k) option, called the Pioneer Uni-K Plan with Roth, will be offered starting January 1, 2006, the date new federal tax rules take effect allowing after-tax contributions to K plans, according to a news release.
In 2002, Pioneer launched an owner-only 401(k) plan, called the Uni-K Plan, designed exclusively for self-employed individuals and owner-only businesses.
Like the Roth IRA, the Roth Uni-K allows after-tax contributions to fund tax-free retirement income. But the Roth Uni-K has fewer restrictions than the Roth IRA, including no income limits and higher contribution limits of up to $20,000 in the 2006 tax year (for investors 50 or older) versus only up to $5,000 with a Roth IRA, according to the news release.
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