BG5150 Posted May 28, 2020 Posted May 28, 2020 So the Employer did not take out 401(k) from bonuses. Correction is a 50% QNEC (with earnings). However, the participant's deferrals are Roth. Is she now losing out b/c the earnings on the QNEC are taxed, where the earnings on a Roth deposit wouldn't have been? QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
Lou S. Posted May 28, 2020 Posted May 28, 2020 Wait, so she got paid, plus got a 50% QNEC and you're worried that the earnings will be taxes? Have her do an In-plan ROTH conversion if that's the issue. Luke Bailey 1
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