Roth IRA election requirement

Answered by:

Question:

May an employer make SIMPLE IRA plan or SEP arrangement contributions to a Roth IRA without an employee’s prior Roth contribution election, for example, under the terms of an automatic enrollment arrangement?

Answer:

No. An employer can make contributions to a Roth IRA under a SIMPLE IRA plan or SEP arrangement only if the employee has affirmatively elected that contributions under the plan or arrangement are to be made to a Roth IRA.

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