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Compliance September 23, 2010
House Approves Bill to Allow In-Plan Roth Conversions
September 23, 2010 (PLANSPONSOR.com) – The U.S. House of Representatives has approved a bill which includes provisions allowing retirement plan participants to roll over their assets into in-plan Roth accounts.
Reported by Rebecca Moore
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 Senate Approved Bill Would Allow Roth Accounts in 457 Plans).
The legislation, approved by a 237 to 187 vote, now goes to the White House and is expected to be signed into law on Monday, according to MarketWatch.