Tax-Free Roth 401(k) May Not be Tax-Free for Long

The Treasury Department and the Internal Revenue Service have proposed rules that if approved, will give taxpayers additional detail about sorting contributions to their 401(k) savings plans as if they were Roth IRAs, according to Dow Jones.

The Roth 401(k) allows taxpayers to contribute money to 401(k)s after tax, therefore allowing the funds to both grow and be withdrawn tax-free, reports Dow Jones.