Pam Shoup Posted June 9 Posted June 9 With the new Roth Catchup Rules for Highly Paid Individuals starting next year, I am trying to make sure that I understand the Rules for recharacterization. I understand that one of the methods for recharacterization is In Plan Roth Rollovers (if completed timely and the plan permits). My question is this: If a participant is under age 59.5, would this be done as an In Plan Roth Transfer and the 5-year recapture rule apply? Pamela L. Shoup CEBS, RPA, QKA
RatherBeGolfing Posted June 10 Posted June 10 @Pam Shoup The guidance provides two correction methods: W-2 correction can be used as long as the participant's W-2 has not been filed or furnished to the participant In Plan Roth Rollover correction. The guidance includes a reference to previous guidance on In-Plan Roth Rollovers: Quote The provisions of Notice 2010-84, 2010-51 IRB 872, and Notice 2013-74, 2013-52 IRB 819, would generally apply to an in-plan Roth rollover used to correct a section 414(v)(7) failure. With that in mind, I believe the answer to your question is Yes. Pam Shoup 1
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