metsfan026 Posted December 12, 2023 Posted December 12, 2023 I have a client asking about the mechanics of making the employer matching contribution as Roth, as allowed under Secure 2.0. In particular how the taxes are being handled. Is the Match being put through payroll, or are companies paying the taxes independently?
Popular Post C. B. Zeller Posted December 12, 2023 Popular Post Posted December 12, 2023 We don't know yet. IRS has not issued any instructions on this. My advice to anyone who wants to do this, is to do an in-plan Roth conversion instead. You will get the same tax result through a well-understood process. ugueth, ALS, Belgarath and 8 others 11 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
Popular Post RatherBeGolfing Posted December 12, 2023 Popular Post Posted December 12, 2023 16 minutes ago, metsfan026 said: I have a client asking about the mechanics of making the employer matching contribution as Roth, as allowed under Secure 2.0. In particular how the taxes are being handled. Is the Match being put through payroll, or are companies paying the taxes independently? I agree with CB, I wouldn't recommend this until we have guidance. No telling when that will be. Bill Presson, DMcGovern, Lou S. and 3 others 6
Popular Post Ilene Ferenczy Posted December 12, 2023 Popular Post Posted December 12, 2023 Just to add my voice to this, we have strongly recommended to our clients that they do not do anything in relation to this until guidance comes. DMcGovern, ugueth, Lou S. and 5 others 8
metsfan026 Posted January 9, 2024 Author Posted January 9, 2024 Thanks everyone! Just wanted to followup, I know there was some guidance that came out so I wanted to check. Thanks everyone!
Belgarath Posted January 9, 2024 Posted January 9, 2024 Not wages, and not reported on W-2. Reported an a 1099-R, Boxes 1 and 2a, code "G" in Box 7. Now, employee might want to increase normal wage withholding to take all this into account, but that's a separate issue. Take a look at IRS Notice 2024-2, Q & A's L-1 through L-11 for a discussion of the issue. Paul I and Bri 2
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now