Advanced Underwriting Consultants

Ask the Experts – January 17

Ask the Experts!

The professionals at Advanced Underwriting Consultants (AUC) answer the tax questions posed by producers.  Here’s the question of the day.

Question: My client participates in a Roth 401(k). Can his employer match his designated Roth contributions?

Answer: Yes, but the matching contributions would not be deposited into the designated Roth account. The employer’s matching contribution must be made into a pre-tax account, as if the employer was matching contributions on traditional, pre-tax contributions. The employer must establish a separate account and keep the designated Roth contributions completely separate from its matching pre-tax contribution.

Have a question for the professionals at AUC?  Feel welcome to submit it by email.  We may post your question and the answer as the question of the day.