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House Approves Bill Allowing In-Plan Roth Conversions
The bill also allows participants in 457 plans to treat elective deferrals as Roth contributions, effective for tax years beginning after 2010.
Under the bill, if a section 401(k) plan, section 403(b) plan, or governmental section 457(b) plan has a qualified designated Roth contribution program, a distribution to an employee (or a surviving spouse) from an account under the plan that is not a designated Roth account is permitted to be rolled over into a designated Roth account under the plan for the individual (see “Roth 401(k) Provision in Broader Senate Bill“).
The legislation, approved by a 237 to 187 vote, now goes to the White House and is expected to be signed into law.
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