Beginning in 2006, you may now designate all or a any part of your deferral to a §401(k) plan as being a contribution to a ROTH component of the §401(k).  This option may be made available by your employer's §401(k) plan and allows you to make contributions to the ROTH component (with after tax dollars) that will result in tax-free earnings upon withdrawal.  Company matching contributions must still be made to the taxable §401(k) component of the plan.  Separate accounting of each component is required.  We recommend this approach for any taxpayer with a life expectancy of at least seven years.  contact us for further information.