Employer Amendment

• 1). Contact your 401(k) plan administrator and review the costs associated with offering both a traditional and Roth 401(k) plan option to employees.
  
  
• 2). Request the paperwork to amend the 401(k) to allow both pre-tax and post-tax contributions. Fill out and submit all documents.
  
  
• 3). Hold an enrollment period to notify employees of the new option. Give employees opportunities to learn about the new Roth 401(k) program and ask questions to the plan administrator personnel.
  
  
• 4). Maintain separate asset accounts for traditional 401(k) assets and Roth 401(k) assets. This is important for tax reporting purposes.
  
  

Employee Election

• 1). Review the Roth 401(k) options with your tax advisor. While it seems like an excellent option to have tax-free growth, some people are still better getting the annual tax break and deferring the taxes until retirement.
  
  
• 2). Contact the 401(k) plan administrator and request paperwork to change your contribution elections.
  
  
• 3). Adjust the contribution election to the Roth 401(k) option. Keep in mind this may only be noted on the form as a "Post Tax Contribution Election."
  
  
• 4). Maintain your traditional and Roth 401(k) accounts separately even after leaving the company and rolling the assets into self-directed accounts.