"Roth and Roll(over): The New Roth 401(k) Rules"

The Small Business Jobs Act of 2010 (the "Act"), signed into law on September 27, 2010, includes a provision that plan sponsors and participants will likely find of interest.  Many 401(k) plans and other similar plans already permit Roth accounts, in addition to "traditional" accounts (which participants make contributions to on a pre-tax basis).  However, prior law did not permit conversions of traditional accounts into Roth accounts within the same plan. 

This Stroock Special Bulletin looks at the provision of the Act and its importance to plan sponsors and participants.