Roth 401(k) contributions are treated the same as regular 401(k) contributions for purposes of a regular or safe harbor match.

Roth 401(k) contributions are added to regular (tax deferred) 401(k) contributions in calculating the maximum that can be contributed to a plan. The maximum contribution (both Roth 401(k) AND regular 401(k) contributions) for 2007 is $15,500 plus up to an additional $5,000 if the participant attains age 50 during the plan year.

No, designated Roth contributions are treated the same as pre-tax elective contributions when performing annual nondiscrimination testing. Yes, a plan can provide that the highly compensated employee (HCE), as defined in section 414(q), with elective contributions for a year that include both pre-tax elective contributions and designated Roth contributions may elect whether excess contributions are to be attributed to pre-tax elective contributions or designated Roth contributions.

No. Employer sponsored 401(k) plans must offer Elective Deferrals as an available option to participants in order to allow for Roth 401(k) contributions.

Roth 401(k) contributions are added to regular 401(k) contributions for ADP nondiscrimination testing.

All Roth 401(k) contributions are to be included with the same payroll date and frequency as Elective Deferrals. A Roth 401(k) money source will be available in the Contribution Processing section via Plan Sponsor Access referencing participants that have elected Roth 401(k) contributions.

A Roth 401(k) is a feature that allows participants to contribute to their retirement on an AFTER TAX basis. As long as the money remains in a plan for at least 5 years, the distribution (even the earnings!) will be TAX FREE.

of this time, the IRS has not finalized regulations about Roth 401(k) contributions. Therefore, distributions (including hardship distributions and loans) will not be able to be made from Roth 401(k) money until the final rules are issued. We expect these rules early in 2006. Of course, a participant would still have access to his account balance from other money sources.

No, it is not a new type of plan. Designated Roth contributions are a new type of contribution that can be accepted by new or existing 401(k) or 403(b) plans. This feature is permitted under a Code section added by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), effective for years beginning on or after January 1, 2006.

You will be able to withdraw your funds based on your individual balances, and the plan requirements, for the following reasons:

No. Only monies from a participant's prior Roth 401(k) qualified retirement account can be rolled over into a participant's Roth 401(k) account within your Plan.

K) contributions are subject to an annual limit regulated by the IRS. When the annual limit is met, deductions are automatically discontinued. Please check with our HR Department for the current years annual limit. Review the year to date (YTD) pre-tax contribution on the paycheck stub.

If you have enough money to contribute to your 401(k) plan and a Roth IRA, you may invest in a Roth IRA if your income level allows you to do so. Generally speaking, you should contribute to your 401(k) at least up to the amount that your employer matches your contributions. Beyond that level, it may make sense to invest the maximum allowed in a Roth IRA.

Participants will need to access their individual accounts online and select the Contribution Summary link under Section Guide. Participants can then click on the button "Change Contribution Rate" to elect a contribution rate for their Roth 401(k) money source.

Excess contributions arise when the ADP test fails. If excess contributions plus earnings are distributed within 2 ?? months following the close of the plan year, the HCE reports certain amounts in gross income in the taxable year in which the first elective contributions of that plan were made. If the excess is distributed after 2 ?? months following the close of the plan year, but within 12 months after the close of the plan year, the entire amount is taxable in the calendar year distributed.

You must first rollover your 401(k) into a traditional IRA. Once you've done this, you may convert your traditional IRA to a ROTH IRA. The rollover from a 401(k) into a ROTH IRA usually triggers tax-consequences since the taxation of ROTH IRA withdrawals is more liberal than 401(k) withdrawals..

Roth contributions are elective deferrals made on an after tax basis within a 401(k) plan. Since these contributions are elective deferrals, they are subject to the 402(g) limit the same as elective deferrals made on a pre-tax basis. If certain withdrawal restrictions are met, the contribution basis and associated earnings are not subject to income taxation at the time of distribution.

A 401(k) plan is a defined contribution plan that is a cash or deferred arrangement. You can elect to defer receiving a portion of your salary which is instead contributed on your behalf, before taxes, to the 401(k) plan. Sometimes the employer may match your contributions. There are special rules governing the operation of a 401(k) plan. For example, there is a dollar limit on the amount you may elect to defer each year. The dollar limit is $11,000.

It depends. Employer contributions to a 401(k) plan on behalf of rank and file employees may reduce the required employer contribution to the 412(i) plan. Employer contributions to a 401(k) plan may be recognized in the benefit calculation in the 412(i) plan. If there is overlapping participation between a 412(i) plan and a defined contribution plan, the employer deductions for the defined contribution plan may be limited.

A company may choose to supplement the employee elective contributions and matching contributions with discretionary non-elective contributions based on profitability or employer performance. More frequently, a 401(k) plan containing only elective contributions will be supplemented by discretionary non-elective contributions. The profit sharing element of discretionary non-elective contributions can provide significant performance incentives to participants.

an employee, you are eligible to participate in your employer's 401(k) plan once you have attained the minimum required years of age and have completed the required number of hours of service. These requirements are determined by your employer and may be found in your plan's Summary Plan Description.

A 401 (k) plan loan must bear a reasonable rate of interest similar to the prevailing rate of interest charged by a bank or other professional lender making a loan in a similar circumstance. This rate varies, but it becomes fixed at the time your loan is processed and remains fixed until it is paid off. Generally, the interest rate is the Wall Street Journal prime rate plus 1%. All of the interest is credited back to the participant's account balance.

Taking a loan from your 401(k) may have a negative impact on your account, because your money is being taken out of the market. This may cause a loss of investment gains or dividends. Read More

No, there are no limits on income in determining if designated Roth contributions can be made. Of course, you have to have salary from which to make any 401(k) or 403(b) deferrals. The employer can make matching contributions on designated Roth contributions. However, only an employee's designated Roth contributions can be allocated to designated Roth accounts.

A7): There are several ways to accomplish this. Which one to choose depends on whether you want to track the cash as it is associated with your paycheck or not. Probably the easiest way is to schedule a deposit to your 401(k) contributions/cash account in the Bills & Deposits section, the amount and date of which correspond to the match.

No, in order to provide for designated Roth contributions, a 401(k) or 403(b) plan must also offer pre-tax elective contributions. Yes, a plan that provides for a cash or deferred election can stipulate that contributions will be made in the absence of an affirmative election by you declining participation.

In addition to lowering your taxable income, 401 (k) plans offer convenience, flexibility, compounded savings, and the ability to self direct your investments.

If you elect to receive your statement electronically, you will be notified via email when it is ready, generally about five business days after quarter end. If you elect paper statement, it will be mailed 15 business days after quarter end.

Federal and state income taxes are exempt in a 401(k) plan. City or local taxes may also be exempt. Check with your local tax authorities to verify this information.