We don’t often see ROTH 401ks – are there many out there?
My fact pattern now is that a closely held company establishes a 401k plan and offers traditional and ROTH 401k. Is it problematic to allow employees to buy stock in the corporation? This is very common with publicly traded stock – but I don’t know if it is common with privately held stock. Obviously it would be cool to purchase shares of an emerging company within a ROTH IRA or ROTH 401k. Seems to me that valuation is a big hurdle to jump. Can a 401 plan be set up to allow the employee to buy stock of the privately held company? I think that an ESOP might be the appropriate vehicle except that I am not aware that an ESOP can hold tax free growth.
Any leads or comments are appreciated.
Jim M