In-Plan Roth Conversion Age

[Guest zoso]

Governmental 457(b) employer wants to add a Roth in-plan conversion feature. My understanding is that the in-plan Roth conversion feature applies to contributions that are currently distributable. A participant in a governmental 457(b) plan may not receive an in-service distribution until the calendar year in which the participant reaches age 70 1/2. Code Sec. 457(d)(1)(A)(i). For an active governmental 457(b) employee who has not reached age 70 1/2, is the conversion feature available?

[ETA Consulting LLC]

Your understanding is correct. There must be a distribution available for this provision to be used. Remember, it may still be used for those who terminate employment.

Good Luck!