Employer Roth 401k Contributions
A new provision within Secure 2.0 allows for employer contributions to be made to Roth accounts. If a participant is deferring into a pre-tax 401k, can he/she still elect to have the employer contribution match made to the Roth? Or does the employer contribution need to match the account type that the participant is deferring into?
Permalink Submitted by Alan - IRA critic on Thu, 2023-03-30 17:35
Sec 604 of Secure 2.0 does not require the matching contribution to conform to the type of elective deferral the employee makes. However, it is not clear when the employee must make the election, or whether the employee can change their election once made. It may be awhile for the IRS to publish Regs for this, and for plan systems to develop support for it.