401k/403b Conversion to ROTH IRA

[CR69]

For an Active Employee, is the employer provided 401k elibible for conversion to a ROTH IRA? If so, under what circumstances? Guessing plan must provide this as a triggering event if so, but not sure plan are required to allow for this. Thanks

[Bradly T.]

This would not be considered a qualified trigger event. Most plans provide "in-service" rollover options (age 59 1/2, years of service, etc.) which would allow a rollover/conversion opportunity. Some larger plans allow a taxable "internal" conversion to their new Roth 401k options. All such conversions will be taxed at highest current or even next up-brackets for individual/family - stacked as ordinary income in addition to all regular income sources....be careful.

[CR69]

Thank you