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Subject:  Re: Post Fiscal Cliff IRA Conversions Date:  1/6/2013  8:07 PM
Author:  irasmilo Number:  117309 of 127549

I was under the impression that previous in-plan rollovers required the money to be distributable (employee over 59-1/2, for example), while the provision in the fiscal cliff legislation basically lets anyone do the rollover. Is that not the case? If it is, that seems like a significant change.

There was never an age restriction because you aren't removing the funds from the 401(k) account. You are converting them from the "regular" part of the 401(k) to the Roth part of the 401(k). You don't get to combine these funds with a Roth IRA that you might already have UNLESS you are at an age/situation where you can take a 401(k) distribution. And, if your employer doesn't offer a Roth 401(k) option, you don't have any additional cptions under the new legislation.

Also on in-plan rollovers, if I've contributed a mix of pre-tax and post-tax money to my 401k, would a rollover be handled the same as a TIRA to Roth rollover that includes pre- and post-tax money (i.e. prorating the taxed vs. non-taxed amount)? I'm guessing yes, but so far my Google-fu has failed to turn up a definitive answer.

I would think so, but I haven't done any research to confirm/refute this.

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