I have an S-corp for which I recently established an Individual 401K plan with one of the top 4 plan administrators. I understand that the employee contribution can be either traditional or Roth. However, since the company matching contribution (25% of the employee's salary) is treated as an expense to the S-corp, it is made as a traditional contribution i.e. tax deferred. My question is if the company's matching contribution can be made as a Roth, after allowing the employee to pay taxes on that matching contribution?
I know that the major brokerages who have pre-built Individual 401K plans don't allow for this. But, can a custom plan be built and submitted to IRS for approval where the employee and the company contributions are BOTH treated as Roth?