Do employees have any recordkeeping or reporting obligations?
An employee has no reporting obligation with designated Roth contributions in a 401(k) or 403(b) plan. However, an employee rolling over a distribution from a designated Roth account to a Roth IRA should keep track of the amount rolled over in accordance with the instructions to Form 8606, Nondeductible IRAs.
You should track all deposits made into either your pre-tax, profit-sharing, or after-tax (Roth) accounts for reporting purposes on year-end tax filings and at the point of distribution.* *Please note: Due to the pre-tax vs. after-tax component of the different source types, pre-tax and employer profit-sharing contributions should be deposited into the same brokerage account and tracked each year. The Roth 401(k) contributions should be held in a separate brokerage account and tracked separately. However, if you roll over a distribution from a designated Roth account to a Roth IRA, you should keep track of the amount rolled over in accordance with the instructions to Form 8606, “Nondeductible IRAs.” If you receive a distribution from your Single(k) account, you may be responsible for filing a Form 1099-R to report the distribution to the government. When you request the distribution from your investment company, confirm whether they are going to file the 1099-R or not.
