23 Aug 2026
SECURE Act 2.0 offered employees the opportunity to receive Roth-style employer contributions if their employer permits them. While employee Roth 401k contributions are subject to normal tax withholdings, the IRS treats employer Roth contributions as in-plan Roth rollovers. This means that individuals receiving employer Roth contributions will receive a Form 1099R and be responsible for paying taxes on the employer Roth contribution. Keep reading for more information how to handle this tax surprise.
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