Category Archives: Roth

IRS guidance on in-plan Roth conversions

Milliman issued a benefit alert today:

The IRS recently issued guidance on the in-plan Roth transfer option permitted by the Small Business Jobs Act of 2010. This option permits plans to be amended to allow participants to transfer eligible pretax 401(k) or 403(b) contributions and vested employer contributions into a designated Roth account within the same plan. If you choose to add this feature in 2010, plan participants may take advantage of special tax treatment available for conversions made in 2010 only.

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