My employer is offering the option to receive the profit-sharing contribution as Roth instead of Pre-tax, which is a new thing under Secure 2.0.
I am set to receive a lump sum of about $17,000, based on a % of my 2025 compensation. I’m leaning towards the Roth option because I can get a chunk of money in to Roth, but I don’t think it’s fundamentally different than converting to Roth, which my plan also allows. I want to increase Roth balance and I figure better now than later.
Curious if others have this option and how you have analyzed. I understand the tax implications.
Age 44. Annual salary is 200k and I will max out my 24.5k contribution on the pre-tax side in 2026, and then have the same choice for the employer contribution.