The Economic Growth and Tax Relief Reconciliation Act of 2001 added a new section 402A to the Internal Revenue Code under which, beginning in 2006, a plan may permit an employee who makes elective contributions under a qualified cash or deferred arrangement to designate some or all of those contributions as Roth contributions. The IRS has now issued proposed regulations regarding such designated Roth contributions. This newly available feature for plans beginining in 2006 may be popular for higher-paid employees who are not eligible to make Roth IRA contributions due to the income cap on eligibility, and may be something that many employers will want to consider despite the administrative complexity.