Include Roth Contributions in Average Benefits Percentage Test?

[Guest im4thehoos]

Should Roth 401(k) contributions be included in the average benefits percentage test (a la pre-tax deferrals) or are they excluded (like after tax deferrals)?

1.401(k)-1(f)(3)(i) and 402A(a)(1) state that Roth contributions can be treated as employer contributions for the purposes of 401(a) and 401(k) and the reg furthermore goes on to say that they are treated as elective contributions for the ADP test. However, what is missing is a reference to 410(b) where the average benefits percentage test is.

Thank you.

[Tom Poje]

include them in avg ben % test (unless by chance they would also happen to be 'catch-up' contributions)

[Guest im4thehoos]

Thanks Tom.

How are you coming to the conclusion that they should be included when it looks like the regulation doesn't reference 410(b)?

[Tom Poje]

as you indicated, Roth contributions are treated as 'ER elective contribution'

1.410(b)-5(d) says only employee contributions are disregarded. Roths are not considered ee contributions (though for all practical purposes they sure do seem like them. must be that Roth label