Zoey Posted October 27, 2009 Posted October 27, 2009 Can a 401(k) Plan ONLY allow for Roth (not pre-tax) deferrals? Thanks so much!
Kevin C Posted October 27, 2009 Posted October 27, 2009 No, you have to offer pre-tax deferrals, too. http://www.irs.gov/retirement/article/0,,i...2956,00.html#13
cpc0506 Posted October 28, 2009 Posted October 28, 2009 A Plan must first offer pre-tax elective contributions before it can add the designated Roth contribution option. Therefore, a client is not permitted to adopt a Roth-only 401(k) plan.
Zoey Posted October 28, 2009 Author Posted October 28, 2009 Whew... That's exactly what I thought and told the client, but then I started quessing myself. Thank you so very much!
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