Expert: Willard R. Brumbaugh, LUTCF - 2/4/2008

Question
I read recently that in 2006 congress passed a law that will allow holders of 401k's to convert them into Roth IRA's starting in year 2010, without penalty or having first convert to a traditional IRA (but paying taxes of course). Can you confirm or deny this?

Answer
Dear Jim,

I cannot confirm or deny this information. However, last year it became possible for an employer to sponsor a Roth 401(k). The employee's contribution would be after tax, but the employer's contribution would still be pre tax.

Willard R. Brumbaugh, LUTCF