Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Regulation and Compliance > Federal Regulation > IRS

IRS Posts Roth Rollover Advice

By Allison Bell

X
Your article was successfully shared with the contacts you provided.

The Internal Revenue Service is weighing in on when employer-plan-to-Roth rollovers should or should not be included in a participant’s taxable income.

The guidance, given in IRS Notice 2009-75, answers one question about rollovers from 401(a) plans, 403(a) annuity plans, 403(b) retirement plans or governmental 457(b) retirement plans into Roth individual retirement accounts.

If the assets started out in an ordinary account, rather than a Roth account, then “the amount that would be includible in gross income were it not part of a qualified rollover contribution is included in the distributee’s gross income for the year of the distribution,” IRS officials write in the notice.

If the assets started out in a Roth account inside a retirement plan, “the amount rolled over is not includible in the distributee’s gross income, whether or not the distribution is a qualified distribution from the designated Roth account,” officials write.

Officials also discuss the effects of income limitations and joint filing requirements on plan-to-Roth rollovers.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.