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However, that was before the global economic downturn.

The law also allows an employee to treat a portion of their contribution amount, up to 100%, as either a regular 401K or a Roth 401K.The rules state that, if you are an employee, the sum total of your elective deferrals– no matter the type of 401k (traditional or Roth) — can not be greater than fifteen thousand and five hundred dollars for tax year 2008 if a participant is under 50; if they are over 50, they may contribute an additional $5,000. Here are a few of the basic rules pertaining to 401k contributions.First, a short history of Roth 401K plans.

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