Roth 401k Conversions
By Tim Berry 1 min read
When the new Roth 401ks (fancy name is designated Roth account) came out, a lot of people thought they would be able to convert their 401ks into Roth 401ks. Unfortunately that wasn’t allowed at the time, but a proposed law could allow exactly that.
Currently the Small Business Jobs Act ( http://finance.senate.gov/legislation/download/?id=603e4898-e487-4770-8c68-4610469a589f) seems to be stalled in the Senate. If it does pass though, section 2112 on page 164 of the above link, will allow people to rollover their 401k money into a Roth 401k. Yeah you’re going to have to pay taxes on the rollover but this is going to open up a lot of interesting doors for planning purposes.
We’re keeping an eye on this one.
