Roth 401k Irrecoverable?
I was just reading Ed’s Sept issue and it said that an election for a ROTH 401k is irrevocable. This is very harsh and impractical.Is this correct. I can never go back to pre tax?
I was just reading Ed’s Sept issue and it said that an election for a ROTH 401k is irrevocable. This is very harsh and impractical.Is this correct. I can never go back to pre tax?
Permalink Submitted by Alan Spross on Sun, 2009-12-13 17:45
Chuck,
I think this must have been in the context of already existing Roth deferrals. They cannot be recharacterized to pre tax and pre tax deferrals cannot be converted to the Roth option. The only way to change the allocation is to adjust the breakdown of future deferrals. Many plans allow unlimited changes or at least on a periodic basis. I think employer plans want to stay out of the confusing recharacterization and conversion business.