Can a plan automatically enroll an employee into making designated Roth contributions if the employee fails to decline participation?
Yes, a plan that provides for a cash or deferred election can stipulate that unless the employee declines participation, the employer will automatically withhold elective deferrals from the employee’s pay. If the plan has both traditional, pre-tax elective contributions and designated Roth contributions, the plan must state how the employer will allocate an employee’s automatic contributions between the pre-tax elective contributions and designated Roth contributions.
Related Questions
- If an employer offers designated Roth contributions to one participant in a 403(b) plan, must the employer offer them to all other participants in the plan?
- Can a plan automatically enroll an employee into making designated Roth contributions if the employee fails to decline participation?
- What is the amount in Box 5 , "employee contributions / Designated Roth contributions or insurance premiums" for?
