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401(k) Plan Design Study with Focus on After-Tax Contributions and ACP Test

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  • 401(k) Plan Design Study with Focus on After-Tax Contributions and ACP Test

    Hi-

    Trying to find a consultant to do a 401(k) plan design study that includes maxing out after-tax non-Roth contribution with passing ACP test. A factor that I am looking for the consultant to include is how adding non-contributing employees in the HCE  group and contributing employees in the non-HCE group will impact passing the ACP test.

    Thank you in advance.

    Thomas

  • #2
    Talk to Kon Litovsky- he's a small business retirement plan advisor. And a 3(38) ERISA fiduciary. All the best!

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    • #3




      Hi-

      Trying to find a consultant to do a 401(k) plan design study that includes maxing out after-tax non-Roth contribution with passing ACP test. A factor that I am looking for the consultant to include is how adding non-contributing employees in the HCE  group and contributing employees in the non-HCE group will impact passing the ACP test.

      Thank you in advance.

      Thomas
      Click to expand...


      Hi Thomas,

      Why would you want to max out after-tax contribution?  Is that because the doctors want to pay themselves low salaries?  In most cases you won't be able to pass testing if only the doctors want to do after-tax.  We can definitely look at it and see what can be done.  You still can't convert after-tax to Roth inside the plan - that's not part of the current version of the plan documents.
      Kon Litovsky, Principal, Litovsky Asset Management | [email protected] | 401k and Cash Balance plans for solo and group practices, fixed/flat fee, no AUM fees

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