ROTH Conversion
We have a 50 year old client that is a current participant in a 401(k)/profit sharing plan. If the plan is amended to allow in service distributions, can the 401(k) and/or profit sharing contributions be distributed and rolled into a Roth IRA? thank you
Permalink Submitted by Alan Spross on Fri, 2010-10-29 19:50
While plans rarely allow in service distributions before age 59.5, any amounts that are eligible for distribution and are rollover eligible can be converted. Hardship distributions are not eligible for rollover. Some plans will be allowing in plan conversions as well, to a Roth 401k.