Full Version: Are aftertax contribs. allowed & what is the authority?
Are aftertax contributions allowed under money purchase plans and what is the authority for this?
I think so.
See Rev. Rul. 74-385
See also H. Rept. 93-1280 (Conf.)(1974), 1974-3 C.B. 415, 452-453; H. Rept. 93-779 (1974), 1974-3 C.B. 244, 332-333; H. Rept. 93-807 (1974), 1974-3 C.B. (Supp.) 236, 325-326.
See Rev. Rul. 74-385
See also H. Rept. 93-1280 (Conf.)(1974), 1974-3 C.B. 415, 452-453; H. Rept. 93-779 (1974), 1974-3 C.B. 244, 332-333; H. Rept. 93-807 (1974), 1974-3 C.B. (Supp.) 236, 325-326.
I think they are permitted too. Whether it is advisable or not is a different issue. "Back in the day" (pre-'86 I believe) participants could do a 6% after-tax contribution as a freebie...not counted as an annual addition, and not subject to any testing. Now, they are annual additions, and also subject to ACP testing. Useless as [insert your favorite], IMO.
QUOTE (J Simmons @ Mar 19 2008, 08:48 PM) 
I think so.
See Rev. Rul. 74-385
See also H. Rept. 93-1280 (Conf.)(1974), 1974-3 C.B. 415, 452-453; H. Rept. 93-779 (1974), 1974-3 C.B. 244, 332-333; H. Rept. 93-807 (1974), 1974-3 C.B. (Supp.) 236, 325-326.
See Rev. Rul. 74-385
See also H. Rept. 93-1280 (Conf.)(1974), 1974-3 C.B. 415, 452-453; H. Rept. 93-779 (1974), 1974-3 C.B. 244, 332-333; H. Rept. 93-807 (1974), 1974-3 C.B. (Supp.) 236, 325-326.
Thank you for your assistance.
G. Goldberg
Thank you for your assistance.
G. Goldberg
G. Goldberg
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