Overview
This program will address a new popular transaction allowing for oversize transfers to a Roth account. It is based on the maximum contribution to defined contribution plans in accordance with IRC §415 which provides a maximum contribution for 2023 of $66,000 plus a catch-up contribution in a 401(k) plan of $7,500. We will address the plan provisions that must be in place to take advantage of this transaction and the process to establish the MEGA Roth. In addition, we will consider any compliance rules related to non-discrimination that must be followed. The webinar will include examples of different plan profiles that are most likely to be able to establish and fund a MEGA Roth account. In a related issue we will review the new catch-up rule set forth in the SECURE 2.0 Act requiring those contributions to be after tax Roth deposits in some cases.
Why you should Attend
To take advantage of the noted tax benefits the 401(k) plan must have some very specific provisions and a participant profile to be successful. If this planning opportunity does not address the plan document provisions required, the entire plan can be disqualified.
Areas Covered in the Session
- Roth IRAs
- Roth income limitations
- MEGA backdoor Roth
- Plan design requirements
- What is the process?
- Non-discrimination testing
- Examples
- Saving for retirement, pre-tax or after tax
Who Will Benefit
- Investment Advisors
- Financial Advisors
- CPA's
- Small Company plan Sponsors
Speaker Profile
Stephen Abramson is the President and founding partner of APS Pension Services, LLC established in 1977, a mid-size consulting and actuarial firm employing twenty-two professional and support staff specializing in pension and pension-related services. For over 40 years, APS has been providing closely held businesses with financial services including pension design and administration, business succession planning, and wealth preservation planning. In 2015 APS Investment Management was established to provide fiduciary services to 401(k) and 403(b) plans and in 2018 APS Wealth Management, a Registered Investment Advisor (RIA), was established to provide investment management services to individual clients and retirement plans replacing a previous relationship with a Broker/Dealer.
Steve graduated from Cornell University in 1964, earned the designation of Chartered Life Underwriter in 1967 from the American College, Certified Pension Consultant in 1970 from the American Society of Pension Professionals and Actuaries and Chartered Financial Consultant from the American College in 1972.
Steve has taught professional level education programs for the American Society of Pension Actuaries; lectured to various professional groups, including the National Conference of CPA Practitioners, The NYS Society of CPAs, Nassau Bar Association, the C.W. Post Tax Institute, and the National Institute of Pension Administrators; and conducted continuing education seminars for Certified Public Accountants for the past 35 years.
He is co-author of Plan Smart, Retire Rich published by McGraw Hill in 1998; author of Advisor’s Guide to Qualified Plans originally published by Aspen Publishing in March 2002 and recently updated with the 2021 eighth edition, and Retirement Financial Management for Clients Approaching Retirement published by Aspen Publishing in August 2002. A less technical version of Advisor’s Guide to Qualified Plans entitled Guide to Qualified Retirement Plans: A Plain Language Primer was published by the International Association of Employee Benefits in March 2005. The second edition of this book was released in 2008
Instructor
Stephen Abramson