justanotheradmin Posted January 29, 2024 Posted January 29, 2024 Does anyone know of any providers that have an election form for participants who want to their employer contributions done as Roth? I know plan documents don't have language for amendments, and software needs to be updated to catch-up, and lots of things are still in flux, so personally I think plans should try to wait, and just live with the existing options for in-plan Roth conversion. But I have a few that are insisting on offering the SECURE2.0 ER contributions as Roth to their participants NOW. It would be helpful to know if anyone has seen any forms yet for this option. Either so I know plans with those providers will have an easier time doing it, or custom forms can be created by looking at some examples. And bonus imaginary internet points if you can actually share the form here. 🙂 Thank you all for the help! I'm a stranger on the internet. Nothing I write is tax or legal advice. I'd like a witty saying here, but I don't have any. When in doubt, what does the plan document say?
Paul I Posted January 29, 2024 Posted January 29, 2024 I have not seen any sample forms, nor have I seen anyone touting that their recordkeeping system all set to administer Employer Roth and just waiting on a client to choose that option. Unless there is a recordkeeping system set up to administer the elections employees can make on a form, a client would be foolish to tell employees that they are offering that feature. There are some pesky issues they need to deal with like documenting the decision to offer the feature. Will they amend the plan document? Or, could they have a resolution describing the provision, setting an effective date and intent to amend the plan when they can? Are they going to offer this only for Roth employer non-elective contributions, or will a Roth employer match also be available? If both, will there be separate elections for each Are they ready to communicate to employees that this will be available only if the participant is 100% vested? How often can employees change their election? There also is a not quite settled question on whether Employer Roth accounts will have their own 5-year time clock. (Most commentary I have seen says no.) Good luck finding a form, and better luck getting the client to realize there is much to be done to implement their decision.
AllThingsForGood Posted January 9 Posted January 9 I'm replying in hopes that there might be an update for this. I, too, would like a Form template to give to clients who elect this option. Thanks!
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