Almost a week after being offered as a welcome spin-off of the government's last-minute, temporary fix to the "fiscal cliff" fiasco, several firms are warning retirement advisors and plan sponsors to be careful when discussing in-plan Roth 401(k) transfers.
The new American Taxpayer Relief Act of 2012 does indeed remove the traditional stipulations which restricted making an in-plan jump from a traditional 401(k) to the pre-taxed Roth 401(k) – leaving a job, retiring, disability or reaching age 59 1/2 – but experts warn that the Act doesn't necessarily create a one-step solution for every 401(k) participant.
Most importantly, a transfer will now no longer be treated as having violated the rules of the plan types sourced for a Roth conversion – the 401(k), 403(b) and the 457(d).
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.