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> Are aftertax contribs. allowed & what is the authority?, Money Purchase Plans
Guest_named_Gloria Goldberg_*
post Mar 18 2008, 01:07 PM
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Are aftertax contributions allowed under money purchase plans and what is the authority for this?
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J Simmons
post Mar 19 2008, 08:48 PM
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I think so.

See Rev. Rul. 74-385

See also H. Rept. 93-1280 (Conf.)(1974), 1974-3 C.B. 415, 452-453; H. Rept. 93-779 (1974), 1974-3 C.B. 244, 332-333; H. Rept. 93-807 (1974), 1974-3 C.B. (Supp.) 236, 325-326.


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Bird
post Mar 20 2008, 06:45 AM
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I think they are permitted too. Whether it is advisable or not is a different issue. "Back in the day" (pre-'86 I believe) participants could do a 6% after-tax contribution as a freebie...not counted as an annual addition, and not subject to any testing. Now, they are annual additions, and also subject to ACP testing. Useless as [insert your favorite], IMO.
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Guest_named_Gloria Goldberg_*
post Mar 25 2008, 12:13 PM
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QUOTE (J Simmons @ Mar 19 2008, 08:48 PM) *
I think so.

See Rev. Rul. 74-385

See also H. Rept. 93-1280 (Conf.)(1974), 1974-3 C.B. 415, 452-453; H. Rept. 93-779 (1974), 1974-3 C.B. 244, 332-333; H. Rept. 93-807 (1974), 1974-3 C.B. (Supp.) 236, 325-326.



Thank you for your assistance.

G. Goldberg
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Guest_named_Gloria Goldberg_*
post Mar 25 2008, 12:15 PM
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Thank you for your assistance.

G. Goldberg
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