401k in service rollover

[Gary]

My understanding with the recent Small business act is that it allows an individual in a 401k plan to take an in service distribution and roll it over to a designated roth account within the plan (assuming plan has designated roth 401k feature).

So if I;m not mistaken, if a 401k plan has a roth feature and allows for in service distributions than an individual with a 401k account balance of say 100k can roll over (or convert) the balnce into a designated 401k roth accouont within the plan and e subject to 100k in taxable income that can be reflected as 50k in 2011 and 50k in 2012.

Have I interpreted this concept correctly?

thanks

[GMK]

Sounds right to me, assuming the participant was eligible to take the distribution whether or not she/he decided to roll it into the Plan's Roth 401(k).

Of course, the tax rates in 2011 and 2012 may be higher than in 2010, so one should run the numbers on the taxes.