Groom Paper Discusses Roth Accounts

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”).