This retirement account is so new and unique that you may not have heard of it. For additional reasons, I describe in my home study course, corporate insiders may not want to offer it to corporate employees. This is because some executives only consider their employees canon fodder.

The Roth 401(k) was created when the Economic Growth and Tax Relief Reconciliation Act of 2001 was passed. There is a provision in the law that allows employers to offer their employees the opportunity to make Roth 401(k) deferrals. Nobody paid much attention, since the new provisions applied only to tax years beginning after 2005, but now 2006 is almost here, and people are waking up.

Deductible IRAs and regular 401(k) plans work well for those taxpayers who expect their marginal tax rate to decrease during retirement because they will be making less money. This means that you're waiting until you retire to pay taxes on dollars you make today at a higher marginal tax rates. You pay on all that money during retirement when your marginal tax rate is less.

Some taxpayers who are smart investors actually expect their marginal tax rate to either remain the same or actually increase when they retire because they are a lot wealthier from their stock investments. They also want to spend and have fun since they taught their kids well how to fend for themselves. There are many investors out there that would certainly fall into this category, even if they don't know it quite yet from investing smart in the stock market as I teach in my home study course.

For those taxpayers who are going to be worth a boatload of money down the road, the Roth IRA used to be the absolute king. Like You pay taxes today when you aren