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Products December 9, 2010
Principal Ready for Roth Conversion Requests
The Principal Financial Group will begin processing
plan changes for in-plan Roth conversions and for participant requests
for such conversions beginning December 16, 2010.
Reported by Fred Schneyer
A Principal news release said 401(k) and 403(b) sponsors have until December 15 to request the change in writing, in order for participants to take advantage of special tax benefits for conversions made in 2010. Participants can either claim the conversion as income on their 2010 tax return or split it between their 2011 and 2012 tax returns.
“With the IRS unveiling final guidance on the in-plan Roth conversions, we’re hearing from more sponsors who want to allow the conversion option,” said Joni Tibbetts, vice president of retirement and investor services at The Principal, in the news release “We’re ready to help sponsors with plan amendments and we’ll be ready for participants who want to make the conversion.”