Roth IRA: Miscellaneous

Are designated Roth 401(k) accounts included when determining whether a plan is top-heavy?

Yes, they are treated just like other elective deferral accounts and must be included when calculating the top-heavy ratio each year.

If an employee is required to take a corrective distribution from his or her 401(k) plan because the plan failed the ADP nondiscrimination test, can the employee take some or all of the corrective distribution from his or her designated Roth account?

Yes, a plan can provide a high compensation, with both traditional, pre-tax elective contributions and designated Roth contributions. During a year you may elect to attribute excess contributions to pre-tax elective or designated Roth contributions. The plan does not have to provide this option and may provide for correction without permitting an HCE to make [...]

Are an employee’s designated Roth contributions included in the 401(k) plan annual nondiscrimination testing?

Most defiantly, designated Roth contributions are treated the same as traditional, pre-tax elective contributions when performing annual nondiscrimination testing.