Dan Posted August 19, 2013 Posted August 19, 2013 The client received a deferral election from a participant and commenced withholding and remitting deferrals. But treated them as pre-tax when they should have been Roth. This went on for several years. The ideal correction is to create corrected W-2s for all involved years. Is there any simpler option, even if it is not as clean?
rcline46 Posted August 19, 2013 Posted August 19, 2013 Several years? Do a ROTH conversion now with taxes now if the participant really wants it.
masteff Posted August 19, 2013 Posted August 19, 2013 Might read EPCRS under 2.05 "Future Enhancements". In (3) they discuss some issues w/ Roth contributions that are under consideration. http://www.irs.gov/pub/irs-drop/rp-13-12.pdf Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
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