Conversion question
I have a client under age 59 1/2 that contributes to his company 401(k) pre-tax and wants to convert money within the plan to Roth 401(k). Assuming the plan will allow him to do so, would he be subject to a 10% penalty due to the fact he is under 59 1/2. Taxes would be paid out of pocket for these conversions.
Permalink Submitted by David Mertz on Wed, 2021-04-07 19:18
In-plan Roth Rollovers are not subject to any early-distribution penalty.
Permalink Submitted by Heywood Turner III on Wed, 2021-04-07 19:30
Thank you for confirming that for me.