In Plan Roth Conversion

[CLE401kGuy]

The client adds in plan roth convesions... then a participant who is 100% vested in all sources elects to convert her entire account balance under the roth conversion rules... if the TPA is doing the recordkeeping in-house - what sources should be set up? -

Should each established pre-tax source then have a corresponding Roth conversion source? - i.e.:

Pre Tax Elective ---> Roth Conversion Elective

Pre Tax Employer PS ----> Roth Conversion PS

Pre Tax Match ----> Roth Conversion Match

or can all sources move into 1 Roth rollover source - I'd think no since you wouldn't want to mix any elective with any employer source regardless of whether it is pre-tax or Roth Conversion...

[Guest A_Dude]

I would account for it as you have since I beleive the new "roth" monies are still subject to the distribution rules in the plan. I could be wrong on that though...