Our plan provides the option to contribute After-Tax. We do not require separate enrollment for catchup contributions and have chosen to automatically shift contributions from pretax to Roth once the employee has reached the 402g limit, for the Roth Catchup required employees.
We have Roth Catchup Required employees who have already reached the 415 limit, plus catchup, using combinations of pretax deferrals and After-Tax contributions.
Assuming the employee has not exceeded the 402(g) limit in pretax deferrals, do we need to recharacterize the pretax amounts to be Roth?
Example: Roth Required Catchup employee has contributed $13,000 pretax and $67,000 After-tax. Are there Would we need to adjust $8000 to be Roth?
