Peter Gulia Posted August 1, 2015 Share Posted August 1, 2015 If a 401(k) retirement plan allows a choice between Roth and non-Roth elective deferrals and provides an automatic-contribution arrangement, how often is the default Roth elective deferrals and how often is the default non-Roth elective deferrals? Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
Peter Gulia Posted August 3, 2015 Author Share Posted August 3, 2015 An employer presumes that retirement savings is good for the employee who doesn't opt out. But how does an employer decide whether Roth or non-Roth contributions are better for such an employee? Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
K2retire Posted August 3, 2015 Share Posted August 3, 2015 All of the automatic contribution arrangements that I've seen default the participant into pre-tax deferrals. hr for me and MWeddell 2 Link to comment Share on other sites More sharing options...
Peter Gulia Posted August 4, 2015 Author Share Posted August 4, 2015 K2retire, thank you for the help. BenefitsLink mavens, any different or further observations? Is there an argument for automatic Roth contributions under an assumption that an eventual retiree's income tax rates are not likely to be lower than current rates? Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
Tom Poje Posted August 4, 2015 Share Posted August 4, 2015 I haven't seen the following addressed (and I am clueless on how it works but forwhatever reason the following popped into my head last week): person starts collecting soc sec. As I understand it, it can be taxed depending on what one's adjusted gross income would be. now if you take a distribution it effects you adjusted gross income (unless it is from a Roth)???? so would having a Roth make a difference at that point? Link to comment Share on other sites More sharing options...
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