Roth 401(K) Explanation


A

Andrew

Company I work for doesn't (yet) offer Roth 401(K). Can
some one explain what typical accounting is going to occur
when, after 1/1/2008, they do? I heard something about the
*company's* contribution need to be tracked seperately
because, unlike mine, there's some special handling or tax
issues on those dollars, and indeed, there's usually TWO
seperate components one has to keep track of (or, at least,
will have the 401(K) administrator keep track of).

I might be all wet here, as I said, I don't know.

Thanks!

--
Regards -

- Andrew

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<< that may be imposed upon the taxpayer. >>
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R

Rich Carreiro

Andrew said:
Company I work for doesn't (yet) offer Roth 401(K). Can
some one explain what typical accounting is going to occur
when, after 1/1/2008, they do? I heard something about the
*company's* contribution need to be tracked seperately
because, unlike mine, there's some special handling or tax
issues on those dollars, and indeed, there's usually TWO
As I understand it, the only monies than can go into a Roth
401(k) are employ*ee* contributions (and the earnings on
them). Employ*er* contributions will still have to go into
a traditional 401(k), whether or not the employee
contributes to one.

--
Rich Carreiro (e-mail address removed)

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
Ad

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R

Rich Carreiro

Andrew said:
Company I work for doesn't (yet) offer Roth 401(K). Can
some one explain what typical accounting is going to occur
when, after 1/1/2008, they do? I heard something about the
*company's* contribution need to be tracked seperately
because, unlike mine, there's some special handling or tax
issues on those dollars, and indeed, there's usually TWO
As I understand it, the only monies than can go into a Roth
401(k) are employ*ee* contributions (and the earnings on
them). Employ*er* contributions will still have to go into
a traditional 401(k), whether or not the employee
contributes to one.

--
Rich Carreiro (e-mail address removed)

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
 

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