andrew

thanks for the answers! Definitely answered my question! In terms of what the IRS should do though...definitely close the mega back door roth, and probably just detach retirement plans from employment entirely since people should be treated fairly inter-company, not just intra-company.

Thanks guys, but don't hate the player, hate the game! I'm just trying to make sure I get what the IRS says I should get Where does it say that a QNEC can't be Roth? I'm just going based on this page that says "The amount of the QNEC is equal to 50% of the employee's missed deferral" (https://www.irs.gov/retirement-plans/401k-plan-fix-it-guide-eligible-employees-werent-given-the-opportunity-to-make-an-elective-deferral-election-excluding-eligible-employees) Yes, I'd have to pay Roth taxes now but a Roth lets you save more that'll grow tax free due to the limits (or in this case the QNEC amount) applying to the post-tax amount rather than the pre-tax amount.

Hi! My employer failed to correct the contributions to my 401k until after I left the company, so they paid a 50% QNEC. However, I elected Roth and they paid pre-tax. This seems wrong to me since it's way less money ultimately going to me. Can somebody verify? (There's another thread suggesting an in-plan rollover, but that doesn't make sense since it's a taxable event and will immediately show how much less the pre-tax amount is compared to the same roth amount Best, Andrew