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Roth In-Plan Conversion


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Guest emcelroy
Posted

Client maintains a terminating pension plan. Participants are interested in having lump sum distributions transferred to Roth portion of client's on-going 401(k) plan. Particpants, of course, would pay tax on entire amount of amount transferred to Roth portion of 401(k) plan. I do not think that is permitted under the provisions of the SBJA of 2010. Any thoughts would be greatly appreciated.

Posted

You are correct--it is not permitted (yet). Why not just convert the distribution into individual Roth IRAs?

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