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Financial Planning / Tax Strategies
|Subject: Re: Post Fiscal Cliff IRA Conversions||Date: 1/6/2013 8:26 PM|
|Author: TMFPMarti||Number: 117310 of 121338|
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.
You're correct. It was a poor choice of words on my part. I was fixed on correcting the implication in the OP that such rollovers were not possible at all before this legislation. Thanks.
I'll need to do some more research on what happens when one has after-tax money in a traditional 401(k) account. I think that after-tax money cannot be rolled into a Roth 401(k) component, but don't hold me to that.
Finally, remember that just because a plan can do something doesn't mean it must. As always with issues on these accounts, the first place to check is with the plan in question.
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