The SECURE 2.0 Act changed the rules regarding Roth employer contributions, allowing employers to route matching contributions into a Roth account. When an employee elects Roth treatment for their employer’s match, the full amount becomes taxable income immediately. The IRS treats this transaction as an in-plan Roth rollover, even though the money never left your retirement account at all. If you do not receive a distribution from the plan, the IRS reports it on a 1099-R for the year the contribution is allocated to your account, and you owe income tax on this year. SEP and SIMPLE IRA owners face an entirely different reporting structure, which the IRS applies differently to their contributions. Tax reporting follows the calendar year when the contribution was allocated to the account.