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.