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Zoey
Oct 27 2009, 11:13 AM
Can a 401(k) Plan ONLY allow for Roth (not pre-tax) deferrals?

Thanks so much!
Kevin C
Oct 27 2009, 11:34 AM
No, you have to offer pre-tax deferrals, too.

http://www.irs.gov/retirement/article/0,,i...2956,00.html#13

Kathy Moran
Oct 27 2009, 07:31 PM
A Plan must first offer pre-tax elective contributions before it can add the designated Roth contribution option. Therefore, a client is not permitted to adopt a Roth-only 401(k) plan.
Zoey
Oct 27 2009, 08:06 PM
Whew...
That's exactly what I thought and told the client, but then I started quessing myself.

Thank you so very much!
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