Get more! Sign up for PLANSPONSOR newsletters.
Products March 4, 2013
Groom Paper Discusses Roth Accounts
March 4, 2013 (PLANSPONSOR.com) – Groom Law Group posted a paper that provides an overview of Roth plans, also known as designated Roth plans.
Reported by Rebecca Moore
The paper discusses the benefits of providing employees with a Roth option, the after-tax treatment of designated Roth contributions and Internal Revenue Code (IRC) requirements governing Roth plans. It also explains the optional in-plan rollover of distributions from traditional accounts to Roth accounts.
The paper is updated to reflect the American Taxpayer Relief Act of 2012, which allows for in-plan Roth conversions without a distributable event (see “The Increased Availability of Roth In-Plan Conversions”).
The Groom paper is here.You Might Also Like:
Vanguard: Auto-Enrollment Continues to Boost Savings, Deferral Rates
Because of the power of automatic enrollment, 401(k) plans with less than 90% participation rates are ‘now in the minority.’
2024 PS Webinar: SECURE 2.0 Catching Up with Catch-Ups
Plan sponsors, recordkeepers and payroll providers face many challenges when it comes to implementing the SECURE 2.0 provision requiring certain...
What Could Taxing 401(k)s Look Like? And How Likely Is It?
A few informal proposals have been made in recent years, and none got very far.