Relabeling Contributions

[Guest mountsouthpaw]

I am working on a plan that has been set up for Roth Deferrals. Several Participants elected to designate contributions in 2007 as Roth. Now that tax filing is upon us, they have asked that it be relabeled as SR- since there was no mistake- is this possible- is changing the deferrals possible if there was no error on the admin side- I feel like the deferral agreement they signed might have an impact, but an independent perspective would be beneficial. would the opportunity change if this were a solo K- can roth contributions be changed to SR at any time after they have been contributed if it is not a mistake of fact... and likewise can SR be relabeled as Roth in the same situation..

[masteff]

It can't be changed after the fact.

http://www.irs.gov/pub/irs-regs/td_9237.pdf

See page 12, 1.401(k)-1(f)(i) [emphasis added]:

(i) Designated irrevocably by the employee at the time of the cash or deferred

election as a designated Roth contribution that is being made in lieu of all or a portion of

the pre-tax elective contributions the employee is otherwise eligible to make under the

plan

[austin3515]

What is SR? Salary Reduction?

[BG5150]

Wait. You said that some people decided to make Roth deferrals. But they want it changed because there was NO mistake? If they want something changed, there had to be a mistake somewhere....

[Kimberly S]

Wait. You said that some people decided to make Roth deferrals. But they want it changed because there was NO mistake? If they want something changed, there had to be a mistake somewhere....

Unless, of course, they want it changed because they changed their minds.

[Guest SWH]

Everybody changes their minds when the tax man comes calling.