Originally Posted by
Big E 757
The plan is approved and is in use in certain professions. What isn’t approved is the “optional” part. We can’t/ won’t get any kind of approval from the IRS in time. It would require a change in the IRS tax laws. What they’ll do, mark my words, is get it into the contract, and then apologize that they couldn’t make it optional. Oops. It was more difficult than they planned, but they’ll continue working with the IRS and by next contract, they’ll have changed the regs and it’ll be optional at some point in the future, so agree with it now and in a few short years, you’ll be able to opt out. It’s the vote for it now, we will fix it later program. If it makes it in at all. I’m feeling the wool being pulled over my eyes on this one. They’re downplaying it’s significance right now, which makes my cynical self think this is how it’ll shake out.
I hope everyone that is doing the mega back door roth enjoys it while they can! It’s going to be a real kick in the nuts when all their DPSP cash gets put into a fund with a 5% return and a “nominal” balance in their name. “Sorry guys, we can’t get the irs to change it this next year. Why throw the baby out with the bath water?”