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Hi, I sent Megan a message and so far she's not responding (she may be teaching a class) would you like me to opt out? (which will essentially put your question ut there for ANY available expert) or would you like me to help you? --- In that scenario, if I get reply, I'll pass to her ... so far nothing (I CAN help with this, I am a Chartered Retirement Plans Specialist
OK, not getting anything back from her OR you. I'll answer and provide the IRS information directly from their site
Can employers allocate plan forfeitures to designated Roth accounts?
Employers can only allocate designated Roth contributions and rollover contributions (and earnings on these contributions) to designated Roth accounts. The employer may not allocate forfeitures, matching or any other employer contributions to any designated Roth accounts.
The reference for this is here: http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-on-Designated-Roth-Accounts#11
As you can see, this one statement actually answers your question (and shows that you are correct) Post tax contributions are what IRS is calling Designated Roth Contributions (ALL Roth contributions are post tax ... even Roth conversion are taxed as they happen so that any money GOING IN is an after tax dollar ... you can essentially use the terms ROth Contributions and Post-Tax contributions interchangeably)
Further, as IRS tells you here, The employer MAY NOT allocate plan forfeitures
Finally (from the same IRS Q&A site), you see that even though an employer may MATCH designated Roth Contributions, the employer must ALLOCATE any match made ON the Roth contribution to a PRE-TAX account See the following:
Can my employer match my designated Roth contributions? Must my employer allocate the matching contributions to a designated Roth account?
Yes, your employer can make matching contributions on your designated Roth contributions. However, your employer can only allocate your designated Roth contributions to your designated Roth account. Your employer must allocate any contributions to match designated Roth contributions into a pre-tax account, just like matching contributions on traditional, pre-tax elective contributions.
The reference for that is here: http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-on-Designated-Roth-Accounts#10
I STILL don't see you coming into the chat here ... But this should give you everything you need, (including the IRS guidance itself)
I'll move us to the "Q&A" mode. … Maybe that will help … (We can still continue a dialogue there, just not in real-time chat, as we can here)
If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.
HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.
I want it to come under Tax. I am a tax professional and needed some help.
Did you mean pre-tax dollars?