Should Clients Consider the New In-Plan Roth Conversions?
Oct 25, 2010
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By Elaine Floyd, CFP ®
A new law allows employers to offer "in-plan" Roth conversions to keep assets from leaving the company's retirement plan. The move might be tempting for simplicity's sake, but in-plan conversions are more easily taxed, subject to RMDs, and cannot be recharacterized. Talk to clients now about the pros and cons.