401k to Roth

Submitted by Timothy Wolfe on Mon, 2018-05-28 00:19

To convert a 401k to a Roth IRA do you have to be separated from service in order to do this? Or can you convert your 401k to a Roth in a manner similar to an in-service distribution?



Submitted by William Tuttle on Mon, 2018-05-28 14:06

  • To do a Roth conversion from a 401k to a Roth IRA, the 401k assets must be “distributable”.
  • IRS regulations prohibit the in-service withdrawal/rollover of employee elective contributions and non-vested employer contributions prior to age 59 1/2. One exception is hardship withdrawals which are not rollover eligible.
  • IRS regulations allow but do not require the in-service withdrawal/rollover of rollover contributions, vested employer contributions and employee voluntary after-tax contribuons.
  • Another option for non-distributable assets is that IRS regulations allow but do not require an In-plan Roth Rollover (IRR) of employee elective deferrals. rollover contributions, vested employer contributions and employee voluntary after-tax contribuons to the Roth designated 401k account.

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