IRS Issues Guidance on Rollovers Into In-Plan Designated Roth Accounts

For over 50 years, Bloomberg BNA’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...

IRS issues Notice 2010-84, providing guidance under tax code Section 402A(c)(4) relating to rollovers from tax code Section 401(k) to designated Roth accounts in the same plan. The guidance, which also generally applies to rollovers from Section 403(b) plans, is triggered by the Small Business Jobs Act of 2010, and applies to contributions after Sept. 27. The guidance is in the form of questions and answers for sponsors of these plans, and provides details on when amendments to the plan are required, the tax consequences of in-plan Roth rollovers, and what exceptions are permitted.