Impact of American Taxpayer Relief Act on Roth IRAs by Sean Deviney

Posted on January 31, 2013 by Richard Berkowitz

The American Taxpayer Relief Act passed by Congress in early January addresses conversions of pre-tax 401(k) accounts to Roth. Until now, participants in a 401(k) could not convert their pre-tax 401(k) account to a Roth 401(k) unless they qualified for a distributable event (i.e. termination of employment, age 65, etc.).

The new tax law now opens up this opportunity to everyone. Companies will be required to amend their plan documents to include the new feature. The IRS is the process of clarifying a number of issues.

Our Employee Benefit Plans group can assist in amending documents, creating qualified plan, education and other components of this new opportunity for employees. Call Sean Deviney at (954) 712-8888 for more information.