Roth 401(k) employer contributions – California
For Federal purposes we can now make employer contributions to the 401(k) Roth. Does California allow employer contributions to the 401(k) Roth?
Many thanks as always …… Mary!
For Federal purposes we can now make employer contributions to the 401(k) Roth. Does California allow employer contributions to the 401(k) Roth?
Many thanks as always …… Mary!
Permalink Submitted by Alan - IRA critic on Thu, 2025-01-09 22:02
Ca allows it, but the plan may not support it yet. If allowed, a Roth matching contribution is treated as a pre tax contribution immediately converted to Roth and that will generate a 1099R making the match taxable.
Permalink Submitted by Mary K. Dean on Fri, 2025-01-10 13:14
It sounds like it is taxable per the 1099 then deductible by the employee in the case of a Solo 401(k)? Hopefully Ed Slott’s newsletter will discuss this.
Permalink Submitted by Alan - IRA critic on Sat, 2025-01-11 20:40
It’s not deductible by the employee because the employer is making the contribution.