Alittle-noticed provision of the big New Year's tax deal could have significant impact on some of your clients. New rules for in-plan Roth 401(k) conversions have opened up some interesting new planning possibilities - and although the conversions come with a few pitfalls, some clients will find them to be a valuable option.

In-plan Roth conversions were first introduced into law back in 2010, as part of the Small Business Jobs Act. The idea was to allow plan participants an opportunity to move money from the traditional side of their company plan, such as a 401(k), to a Roth 401(k) within the plan. Plans that can offer a Roth option include 401(k), 403(b) and governmental 457(b) plans. (The federal government's thrift savings plan also offers a Roth option.)

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