Groom Paper Discusses Roth Accounts

March 4, 2013 ( – Groom Law Group posted a paper that provides an overview of Roth plans, also known as designated Roth plans.

The paper discusses the benefits of providing employees with a Roth option, the after-tax treatment of designated Roth contributions and Internal Revenue Code (IRC) requirements governing Roth plans. It also explains the optional in-plan rollover of distributions from traditional accounts to Roth accounts.  

The paper is updated to reflect the American Taxpayer Relief Act of 2012, which allows for in-plan Roth conversions without a distributable event (see “The Increased Availability of Roth In-Plan Conversions”).  

The Groom paper is here.