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re: Can someone explain the highly compensated employee 401k rule
Posted on 6/30/15 at 10:13 am to jmh5724
Posted on 6/30/15 at 10:13 am to jmh5724
quote:
Can anyone explain why my roth contributions would be tied to pretax under this rule
Simple answer: Because the test is based on total contributions from salary, not tied to Roth or non-Roth.
Real answer: Because when Roth 401Ks were created, no one updated the testing rules (either by design or neglect).
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