Roth Rollovers but not Roth 401(k) Elective Deferrals

[pjb1835]

Can a 401(k) plan allow for Roth rollover contributions but not Roth elective deferrals?  If not, why not?

[Belgarath]

No. See below for a definition of a designated Roth account. Can't have a designated Roth account if you don't meet the definition.

§ 1.402A-1 Designated Roth Accounts.

Q-1. What is a designated Roth account?

A-1. A designated Roth account is a separate account under a qualified cash or deferred arrangement under a section 401(a) plan, or under a section 403(b) plan, to which designated Roth contributions are permitted to be made in lieu of elective contributions and that satisfies the requirements of § 1.401(k)-1(f) (in the case of a section 401(a) plan) or § 1.403(b)-3(c) (in the case of a section 403(b) plan).

[pjb1835]

So, i can amend to add designated roth accounts for one day to allow for the rollover and then amend it out (all in one amendment)?

[Kevin C]

Take another look at the definition of designated Roth account cited above.  What you are describing does not allow Roth deferrals to be made, so there is no designated Roth account to roll into.

I'm also guessing that the participant here is an HCE.  If so, your suggested short term amendment would clearly be discriminatory under 1.401(a)(4)-5(a).