Can pretax 2009 401k be rechar to Roth 401k?
$22000 for over 50 year old was put into a pretax 401k in Feb 2009 in an individual 401k plan for a self employed individual’s profit sharing plan. Can the $22000 be withdrawn and recontributed as a Roth 401k for 2009? Or is there another option? The deduction is no longer needed.
Permalink Submitted by Alan Spross on Tue, 2010-02-16 03:27
The deferrals cannot be recharacterized within the plan for 2009, or for that matter cannot be converted to a designated Roth option in the future even if the plan has a Roth option.
It appears that greater use of the lower brackets for 2009 is the main objective, but contributions cannot be rechacterized in the same manner as IRA contributions.