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.

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. See similar questions...

A rehired veteran has up to three times the period of service - not to exceed five years - to make up missed employee contributions. The amount of makeup contributions is subject to the limits that would have applied during the military service period. Return to List of FAQs See similar questions...

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. See similar questions...

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. See similar questions...

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. See similar questions...

Since an employer match can always be increased fairly easy, but could be difficult to reduce, there are many experts that advise an employer to start with no match or with a very low match. However, selecting a match depends on many considerations. See similar questions...

You can easily roll over all or part of a previous employer's retirement plan to Firstrade. If you wish to open both an accumulation IRA (e.g. Traditional or Roth) and a Rollover IRA, please complete two separate Adoption Agreements. Visit our Forms Download Center for necessary forms. See similar questions...

The employer does not have to begin the makeup contributions until after the veteran returns to civilian employment with the same employer. The employer's makeup contribution period is equal to three times the period of qualified military service - not to exceed five years. See similar questions...

Our 401(k) Plan is available to all employees. The Plan is administered by Great-West Life & Annuity. See similar questions...

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. See similar questions...

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. See similar questions...

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

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. See similar questions...