Roth 401K

[pgold]

If an employee has w-2 comp of $15000, what is the max elective deferral to a Roth 401k Plan?

Can it be $15000 or must it be net of fed, state and soc sec payments?

[Guest A_Dude]

It's $15,000 minus all the taxes. In theory you can defer up to 100% of pay, but taxes must be paid on that "pay" before it is recieved as compensation. So, you will always end up with less than the "true" 100% deferral election.

[GMK]

A previous discussion of this topic (can't find it right now) suggested putting a statement on the deferral election form to notify participants that other deductions take precedence over deferrals, just so people know that 100% isn't gonna be 100%. Seems like a good idea to us.