Leaderboard

Give me a call. I know a guy who can help someone or something 'disappear' 😉

I may or may not have seen some of these manually signed documents due to "issues with electronic signature software" and other similar explanations.

Targeted bottom-up QNECs to the ACP test with those rules. Sounds fun enough.

Now that service providers use electronic-signature regimes, have plan sponsors invented new explanations about why a signature was not received before year-turn?

Maybe top-paid group would help?

I have a large law firm client that recently asked about mega backdoor Roth and voluntary after-tax contributions in general. I explained the ACP test issue and after a slight pause, one of the partners said, "but that can be resolved by making a company contribution instead of refunds, right?" They are actually considering corrective QMACs to let their highly paid (and, coincidentally, HPI) participants do this. Sure, it works mathematically if they don't mind spending the money, but I have to wonder if it will really work out better than adjusting their class-based profit sharing.

I will also add that allowing after-tax and Roth could be making it easy for employees to do something stupid, like contribute after-tax contributions without first maxing out their Roth 401(k). That's probably the most obvious issue with adding after-tax contributions in general.

By all means, if you can borrow at 5.5% and get a guaranteed return of 10%, do it. There are no risks: - lose your job? No risk there. - default of your family member's business? No risk there. - mis-estimate of your 10% return assumption? No risk there. - loss of diversification in your investments? No risk there. - risk of family alienation? No risk there.