The Small Business Jobs Act (Act), signed into law on September 27, 2010, allows in-plan Roth conversions for 401(k) and 403(b) plans. Under the Act, effective immediately, plan sponsors may amend their plans to permit employees to convert their 401(k) and 403(b) pre-tax contribution accounts to Roth contribution accounts within the plan (much like conversions are now allowed from defined contribution plans to Roth IRAs). The Act also provides that, effective January 1, 2011, Roth salary deferrals and in-plan conversions may be included under governmental 457(b) plans.

Source: Employee Benefits & Executive Compensation Alert
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