Roth Contributions

Duration: 60 Min.

Roth deferral contributions are part of a participant’s taxable income but are still treated the same as pre-tax deferrals in most other ways. Since these contribution amounts have already been taxed, they can be withdrawn tax-free by participants later, provided certain requirements are met. Additionally, if the special rules are met, earnings from Roth deferrals can be distributed without tax consequences. Because of these very detailed and specific requirements, Roth contributions need to be processed and tracked separately from other deferrals.

In this session, we will:
  • define Roth contributions and examine the differences between these and traditional deferrals
  • set up the employer and plan for Roth contributions
  • process Roth contributions
  • process Roth distributions
  • calculate Roth basis and discuss the different taxation requirements
  • perform compliance testing and corrections using Roth contributions
  • set up and process in-plan Roth rollovers

Event Details