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.

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...

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...

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...

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. See similar questions...

Your 401(k) plan helps you start regular investing, and stick with it. Your contributions are automatically deducted from your salary before you receive your check. Since the money is deducted from your gross income, you will have a lower taxable income, which means you will pay less in annual taxes. The money you save will accumulate on a tax-deferred basis. This means you pay no federal or state taxes on your contributions or investment earnings until you start withdrawing money from the plan. 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...

Yes. From the trustee's perspective, the fact that all or a portion of the loan is taxed to the participant does not remove the participant's obligation to the plan. The participant is still responsible for paying interest on the loan and repaying principal. Yes. If the plan permits withdrawals after age 59?, and the participant is older than age 59?, the outstanding loan may be converted to a distribution and no further obligation to the plan will exist. See similar questions...

No, Retirement Plan Contributions are tax deferred - you do not pay taxes at the time they are contributed or onany earnings. Your Contributions and associated earnings are taxed only as the money is withdrawn as income. See similar questions...

Yes. Current tax law (EGGTRA tax reform legislation passed in 2001 and effective beginning January 1, 2002), permits an individual under Portability provisions to transfer funds from a 401(k) plan offered by a for-profit corporation to a 403(b) plan such as the plan offered by Northwestern University and vice versa. Individuals wishing to do so should contact their investment companies. See similar questions...

IRA can be rolled over into a qualified retirement plan, assuming the qualified retirement plan has language permitting such rollovers. See similar questions...

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. See similar questions...

Yes, we want to help our nurses plan for the future, so we offer the best 401(k) program in the industry. k) Safe Harbor Plan Eligibility: First of the month following 90 days of employment; must be at least 21 years of age. Company Match: 100% of contributions up to the first 3% of compensation plus 50% of contributions up to the next 2% of compensation Contributions: Employee may contribute up to $13,000; Age 50 and over may contribute up to an additional $3,000. See similar questions...