DESIGNATED ROTH ACCOUNT

A retirement plan in which employees can have all or a portion of contributions to a 401(k) or 403(b) placed into a separate Roth retirement account. Contributions made to a designated Roth account are considered to be to a separate account within the 401(k) or 403(b) plan, and contributions, gains and losses are accounted for separately from regular 401(k) or 403(b) contributions.