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Retirement Planning
Chapter 5: Profit-Sharing Plans/SECURE 2.0 ACT – ROTH ELECTION FOR
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Chapter 5: Profit-Sharing Plans

SECURE 2.0 ACT – ROTH ELECTION FOR

01.Core Concepts

EMPLOYER MATCH • SECURE 2.0 Act allows plans the option to permit employees to elect Roth employer matching or nonelective contributions • Results in taxable income to the employee in current year • Applies only to contributions that are immediately vested • Those made under a safe harbor plan (always immediately vested), and • Those made under a non-safe harbor plan where the employee has met the service requirements to be fully vested