WealthRabbit Support

Are employer contributions allowed to be Roth?

Employer contributions can be treated as Roth only if the employer’s plan allows it and the SECURE 2.0 requirements are met. These contributions must be fully vested and are generally included in the employee’s taxable income in the year they are made.

Not all SIMPLE IRA providers or plan documents support Roth employer contributions. Employers must affirmatively adopt the feature and administer it correctly for Roth treatment to apply.