after tax deferrals:

[Lori H]

My thinking is NO, they don't

[BG5150]

After tax contributions are not deferrals, so, no, they don't count. And don't forget, they get tested in the ACP test, not ADP. (401k vs 401m)

[Lori H]

Can you briefly explain the difference between After Tax contributions and ROTH 401(k) deferrals? I know ROTH goes towards 402(g) limits and is part of the ADP test requirements, but both are after tax.

Thanks

[JanetM]

Apples and oragnes.

AT contributions have earnings taxed upon withdrawal and normally can be taken out at any time (tax and maybe penalty on earnings). AT amounts do count towards the annyal additions.

Roth earnings are tax free and because of that there is limit on the amount you can contribute. There are also penaltys for early withdrawal.