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Posted

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!

Posted

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.

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