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Posted

I am creating a form to send to clients to give to all their 100%-vested participants, to elect their 2024 ER contributions be made as Roth.

I understand that a 2025 1099-R will be produced for each participant who wishes to have their 2024 ER contributions go in as Roth money type, since the "allocation" and/or "deposit" is being made in 2025 for 2024's ER contributions.

Here's my operations question:  Am I right to say that the 2024 ER contributions that are elected to be Roth (per person) will be shown that way on the 2024 reports? 

I know that seems like a dumb question, and maybe the better question is:  How long does each participant have to complete their Form saying they want their 2024 ER contributions as Roth?? 

When should we be sending these Forms to our clients for the year we're closing out?  As we all know, there can be a lot of back and forth before an employer makes a final decision on their ER contributions.  Handing a participant a form today might send the signal that they 'will definitely' be receiving a Discretionary Match and/or Profit Sharing etc., when the decision isn't made until March 14th or even Sept 14!

 

Thoughts?  I'd love to hear how others are operating.  

Posted
9 minutes ago, ratherbereading said:

We are strongly discouraging our clients from adopting that measure. 

Because of the operations I mentioned?  Are you offering the In Plan Roth Rollover as an alternative solution?

Posted
1 hour ago, AllThingsForGood said:

Because of the operations I mentioned?  Are you offering the In Plan Roth Rollover as an alternative solution?

Yes partly - and no not offerting in plan Roth Rollovers.  I also have had 0 clients wanting to add their er contr. as Roth.  

4 out of 3 people struggle with math

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