Tuesday, November 30, 2010

IRS Notice 2010-84 –Guidance on In-Plan Roth Rollovers

Part III --- Administrative, Miscellaneous, and Procedural

This notice provides guidance under § 402A(c)(4) of the Internal Revenue Code, relating to rollovers from § 401(k) plans to designated Roth accounts in the same plan ("in-plan Roth rollovers"), as added by § 2112 of the Small Business Jobs Act of 2010 ("SBJA"), P.L. 111-240. The guidance in this notice also generally applies to rollovers from § 403(b) plans to designated Roth accounts in the same plan.

Answers for the following questions are provided in the notice:

  • What is an "in-plan Roth rollover"?
  • What amounts are eligible for in-plan Roth rollovers?
  • Is an in-plan Roth direct rollover treated as a distribution for all purposes?
  • Can a plan add an in-plan Roth direct rollover option for amounts that are not otherwise distributable under the terms of the plan but that would be permitted to be distributed under the Code if the plan so provided?
  • Must a plan that offers in-plan Roth rollovers include a description of this feature in the written explanation the plan provides pursuant to § 402(f) to an individual receiving an eligible rollover distribution?

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Employee Plans News - Issue Number: 2010-11 – November 26, 2010

The IRS released Employee Plans News - Issue Number: 2010-11 – November 26, 2010. It contains the following articles:

Monday, November 8, 2010

IRS Revenue Ruling 2010-27 – What constitutes an Unforeseeable Emergency Distribution under section 457(b) of the Code and regulations section 1.457-6(c).

This ruling provides guidance, in the form of examples, on what constitutes an unforeseeable emergency distribution under section 457(b) of the Code and regulations section 1.457-6(c). The ruling also applies the same standards to distributions from a nonqualified deferred compensation plan subject to section 409A.

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