Although Guideline 401(k) plans allow for Roth contributions (a specific type of after-tax contribution) in addition to traditional pre-tax contributions, we do not support any type of non-Roth or voluntary after-tax contributions at this time.
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In order to complete a backdoor Roth rollover, the plan would need to allow for either in-plan Roth rollovers (allows the non-Roth after-tax to be converted to Roth within the plan) or for the distribution of voluntary after-tax at any time (allows the participant to roll the amount to a Roth IRA immediately). Guideline is unable to support either of these provisions.
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Allowing voluntary after-tax contributions would let participants make backdoor Roth rollover contributions above the deferral limitation on Roth 401(k) contributions. However, this type of arrangement frequently leads the plan to fail certain nondiscrimination testing which, if not corrected, would have negative ramifications to the tax-qualified status of the plan itself.
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​This information is for general education purposes only and not intended to be tax advice. You are advised to consult a qualified tax professional before relying on the information provided herein.