General Motors and Delphi Roth 401(k)

General Motors and Delphi are taking a progressive step in improving their 401(k) plans for employees. Beginning July 1, 2006, all eligible hourly and salaried employees will have the opportunity to participate in a Roth savings feature within their 401(k) plan.

We applaud GM and Delphi for taking advantage of this provision in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). The Roth feature within a 401(k) plan will allow employees to “tax diversify” their income sources for retirement. Employees will have the flexibility to direct contributions among both types of 401(k) accounts as their current and future tax situation dictates. Additionally, for those GM and Delphi employees who are ineligible for a Roth IRA, a Roth 401(k) provides an opportunity to build a tax-free retirement income source.

Roth 401(k) - Frequently Asked Questions

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