FAQ 546: 402g--Roth 401(k) contributions in source 10 not counted in catchup calculations


Why are the Roth 401(k) deferrals in source 10 not being shown as catchup contributions?


The 402(g) calculation is taking into account the Roth source, but if you want catchup attributed to that source, you need to select either "Proportional" as the Source Reduction Method or put the Roth source as the first one listed in the Source Reduction Order box and use the "Sequential" Source Reduction Method. If the deferral is listed as the first source for the sequential method, the 402(g) calculations will subtract the catchup from the deferral first, and then from the Roth source if there is any remaining amount that can be characterized as catchup. If you want to attribute catchup to both, select "Proportional" as the Source Reduction Method.