Friday, March 29, 2013

More savers can convert to Roth 401(k)s under fiscal cliff deal

An unexpected provision in the fiscal cliff deal will give workers the option of paying taxes now on their retirement savings instead of later on when they withdraw money from their accounts.

The change -- intended to drum up billions of dollars in government revenue -- allows more employees to convert a traditional 401(k) into a Roth 401(k), a relatively new retirement savings option that front loads the tax liability. Those choosing the conversion would pay taxes on the funds transferred, but any future gains or withdrawals would be tax free.

To read the full article click here

Source: Melanie Hicken,

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