Back Door Roth to go with Cash Balance/PS Plans

[metsfan026]

Good afternoon, thank you in advance for your help!  I have a two-man plan who has a Cash Balance + Profit Sharing combo Plan.  One of the owners if, given the 6% limit into the Profit Sharing for deductibility, does he still have the ability to a mega backdoor Roth.  Anyone have any guidance?

Thanks in advance!

[Lou S.]

If the plan allows for After Tax Voluntary Contributions, ROTH 401(k) and In plan conversions/rollover provisions to ROTH, then yes.

After Tax Voluntary are subject to ACP testing so if the Plans has any NHCEs that are included in testing you will probably have a testing issue that will make this impractical but if these plans are HCEs only you should be good.

[truphao]

it is all good for 2024, it is probably too late to do VAT for 2023 given that only contributions made up to January 30th can be considered toward 2023 415 limit.

[CuseFan]

What both our esteemed colleagues said - plan document must accommodate, subject to testing unless HCEs plan only, and too late for 2023.