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Client is a 12/31/08 plan year end. They failed ADP - refunds have not been processed. One of the pariticipants is planning to take his refund from his Roth account - does the employer still have to pay the 10% penalty on the refund from Roth? I couldn't find anything specific in the instructions regarding Roth. I would think/hope the 10% penalty would NOT apply to Roth. . .

Thx!

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