Roth Employer Contributions: More Ways to Roth

TRA [The Retirement Advantage]

Plan participants may have a new ability to treat employer contributions as designated Roth contributions within 401(k), 403(b) or governmental 457(b) plans, in addition to their own deferrals. If the plan permits, participants may elect to treat their vested employer contributions as a designated Roth matching or nonelective contributions in the year the amounts are allocated to their accounts. This process offers a strategy to reduce future required minimum distributions and create additional tax-free Roth distributions. The course overviews the trade-offs and considerations when making decisions concerning designated Roth contribution opportunities. 

Learning objectives

• Exploring the mechanics of the designated Roth contribution election process
• Familiarity with the tax and reporting implications of these elections
• Plan operational and timing requirements
• Awareness of plan amendment and timing rules

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