Nope, that’s not a typo.  There’s a new retirement plan that some employers are offering, and it’s called the Roth 401 (k).  Much like the name sounds, it’s basically a hybrid of the Roth IRA and 401 (k).  Here are some of the Roth 401 (k) features:

• After-tax contributions.  You don’t get a tax break in the current year, but your withdrawals will be tax free ( as long as you’re at least 59 1/2 )
• Forced withdrawals beginning at age 70.  Like the 401(k), you’ll have to start taking money out of your Roth 401(k) once you hit the ripe young age of 70.
• $15,500 yearly contribution limit.  Between your regular 401(k) and your Roth 401(k), $15,500 is your yearly limit.
• Employer matches go into your regular 401(k).  Weird, but your employer match doesn’t go into your Roth 401(k), but rather your regular one.
• No income limits.  Unlike the regular Roth IRA, anyone can contribute.
• Non-retirement age withdrawals are weird.  Say your account consists of $8,000 in contributions and $2,000 in earnings ( or 80% and 20% ), for a total of $10,000.  You want to pull out $2,000 for an emergency medical bill ( and you’re not of retirement age ).  Since your account consists of 80% contributions and 20% earnings, 80% of your withdrawal is not taxed, while the remaining 20% is taxed.  So you won’t pay taxes on $1600 of your withdrawal, but you will pay taxes on the remaining $400.  There is also the usual 10% penalty to add insult to injury.  In other words, don’t withdraw your money early!

Sounds like a pretty good setup.  You lose the withdrawal flexibility that the regular Roth IRA offers, but you get the benefits of non-taxed retirement withdrawals.  Unfortunately, my employer doesn’t offer the Roth 401 (k) – they only offer a lame 401(k) with a mystery match and 5 year vesting period.  Does your employer offer a Roth 401(k)?  If they do, are you contributing?