Here’s an important development for anyone enrolled in a 401(k) or 403(b) retirement plan.
1. “Convert” a portion of the pre-tax dollars you have saved to after-tax dollars without having to arrange a rollover to a Roth IRA.
2. You may even be able to “go Roth” in 2010, with the chance to spread the taxes on the Roth conversion over 2011 and 2012.
To be eligible for this Roth conversion option, you must
- Be older than 59½, or
- Have assets in a 401(k) or 403(b) account at a previous employer that could potentially be rolled over to your current employer’s plan.
Please note: in order for you to do this, your employer’s retirement plan has to allow after-tax Roth contributions.
Also note: Starting in 2011, Roth accounts will be allowed within governmental 457(b) plans for the first time.
If you would like to learn more about this, call me at 866-594-9919.