pre-tax 401(k) to ROTH

Are you allowed to roll over a pre-tax 401(k) directly into a ROTH IRA? I know in the past you could not do this, but have the rules changed?



Yes, this was introduced as Sec 824 of the Pension Protection Act, with this provision effective in 2008. These direct Roth conversions were subject to the income limits in 2008 and 2009 but the income limits were eliminated thereafter.

Conversions done this year are eligible for the two year tax deferral.



Thank You.



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