Employers are allowed to create a type of elective deferral program, referred to as a “Qualified Roth Contribution Program,” under which participants contributing to a 401(k) plan designate a portion of their contributions as Roth contributions. 

Employer Matching or Non-elective Contributions as Roth Contributions - SECURE 2.0 Act Section 604, effective December 29, 2022, alters a long-standing rule barring employer matching contribution on a Roth basis. Matching contributions must have been on a pre-tax basis only. Section 604 allows defined contribution plans to provide participants with the option of receiving matching contributions on a Roth basis.