The legislation to avoid the "fiscal cliff" includes a provision that would allow workers with 401(k)s to convert to a Roth 401(k) at any time, regardless of whether the individual is allowed to take a distribution out of the plan. Currently, plan participants can take such a step only after certain qualifying events. "Basically, the new rule simply means you can now do intra-plan 401(k) conversions from traditional to Roth in the same manner you can do so for IRAs," writes Michael Kitces.

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