401(k) plans allow Roth contributions beginning January 1, 2006

November 25, 2005 — As you are aware, BISYS Retirement Services, Inc., continues to wait for the IRS to release final guidance on what is required to amend pre-approved plan documents to allow for Roth contributions. To ensure that our clients have the tools necessary to remain competitive in the retirement plans marketplace, BISYS has several proprietary solutions available to you and your clients that will allow them to take advantage of the Roth 401(k) contribution. BISYS clients may obtain Roth authorization documentation to demonstrate the client’s desire to allow Roth contributions and to operate the plan in compliance with the Roth(k) requirements. Alternatively, BISYS has available a formal plan amendment for those clients who feel that an amendment should be adopted prior to adding this feature to their plans.  The solutions vary based upon the unique needs of each plan administrator. 

Please note that, upon release of final guidance by the IRS, those clients who used the authorization approach will have to adopt an amendment formally adopting Roth 401(k) provisions, and it is possible that an additional amendment will be required of plan administrators who choose to use the amendment approach today. 

PDFClick Here for additional information on additional Roth 401(k) and 403(b) products and services.

Please contact a BISYS Representative at 800-346-3860 or email us at sales.support@bisys.com for additional information regarding the plan amendments and/or authorization forms.