Roth 401(k)

[blue]

If you have a plan year ending February 28, 2006, can they add the ROTH 401(k) feature January 1, 2006 or do they have to wait until March 1, 2006 (the plan year begining in 2006?

[Guest Noodle]

The proposed regs say, "These regulations are proposed to apply to plan years beginning on or after January 1, 2006." We'll see what the final reg's say.

- Noodle

[rcline46]

Yes, but the plan must be amended by 2/28/06, like ASAP. And hope your software can handle it and the payroll provider handles it properly.

In other words, you may not be READY to start taking Roth contributions on 1/1/06.