On September 27, 2010, President Obama signed into law the “Small Business Jobs and Credit Act of 2010” (H.R. 5297; Pub. L. No. 111-240) (the “Act”). The Act contains an important feature to allow Roth 401(k) and 403(b) plans to offer an “in plan” Roth conversion option that will allow participants who are eligible to receive a plan distribution to convert their non-Roth account balances to Roth accounts within the tax-qualified plan.
As guidance is necessary to properly implement this provision, and the timeframe for action is tight, we are forming a comment group that will seek guidance on the various open issues. Groom Law Group will a hold an initial conference call next week for interested members to collect comments/questions to address in the comment letter.