Congress paves the way for Roth 401(k) conversions

In 1998, Congress introduced the Roth IRA as a new way to save for retirement. In 2006, the Roth concept was extended to 401(k) plans. From the beginning, taxpayers have been allowed to convert their traditional IRAs to Roth IRAs, but tax costs and restrictions limited the appeal of doing so. Recently, the Roth IRA conversion rules were significantly liberalized. Congress has now taken additional steps to encourage conversions by permitting participants in employer-sponsored retirement plans to convert their account balances to Roth 401(k) accounts. Read More...