Whether a person can do an in-plan conversion is highly dependent on the plan. Many plans don't offer in-plan conversions, so item number one is to find out whether the plan allows it. I work for the federal government, and the TSP doesn't allow in-plan conversions--yet. According to the recent FRTIB meeting, in-plan TSP conversions will be available in 2026.
if someone just today learns about this ROTH conversion, and figures out if he or she had known this last year could have converted $20k for example, and stayed in the 12% tax bracket ,is there a grace period into 2024 that a conversion can take place for 2023 ? or once Dec 31 passes by, that is it. THanks for sharing this info.
29 y.o. W2 earner. Hitting max of 69k for the year in contributions in traditional 401k and for-see on hitting this until retirement (65) . Already Maxed Back Door Roth IRA. Unfortunately live in high tax state (CA). Marginal tax rate (est 35%). Companys offers in plan roth conversations. Assuming that I am going to continue to be in a relatively high tax bracket in retirement. Would an in plan roth conversation make sense at a relatively young age?
I tired to do this during Covid and my plan administrators told me it couldn’t be done and had never heard of it. They say you can only convert if you were retired
They probably thought you meant a regular 401k to Roth "IRA" conversion, or they had not yet added a Roth 401k to your plan. However, you should check again because things change. Best thing to do is log into your plan and see what options are available. If your 401k has a Roth 401k option, then you probably have an In-Plan Roth 401k Conversion option available. In my plan it's called "In Plan Roth Rollover", which takes the funds from the pre-tax side of the 401k and moves them to the "Roth" side of the same 401k.
Whether a person can do an in-plan conversion is highly dependent on the plan. Many plans don't offer in-plan conversions, so item number one is to find out whether the plan allows it. I work for the federal government, and the TSP doesn't allow in-plan conversions--yet. According to the recent FRTIB meeting, in-plan TSP conversions will be available in 2026.
if someone just today learns about this ROTH conversion, and figures out if he or she had known this last year could have converted $20k for example, and stayed in the 12% tax bracket ,is there a grace period into 2024 that a conversion can take place for 2023 ? or once Dec 31 passes by, that is it. THanks for sharing this info.
How would I convert properties in my 401K plat to Roth 401K plan?
29 y.o. W2 earner. Hitting max of 69k for the year in contributions in traditional 401k and for-see on hitting this until retirement (65) . Already Maxed Back Door Roth IRA. Unfortunately live in high tax state (CA). Marginal tax rate (est 35%). Companys offers in plan roth conversations. Assuming that I am going to continue to be in a relatively high tax bracket in retirement. Would an in plan roth conversation make sense at a relatively young age?
yes, I'm in the same position. Do the roth in plan conversion if you can
I processed an in plan conversion from 401k to In Plan Roth. I assume I will get a 1099 for that amount?
I tired to do this during Covid and my plan administrators told me it couldn’t be done and had never heard of it. They say you can only convert if you were retired
They probably thought you meant a regular 401k to Roth "IRA" conversion, or they had not yet added a Roth 401k to your plan. However, you should check again because things change. Best thing to do is log into your plan and see what options are available. If your 401k has a Roth 401k option, then you probably have an In-Plan Roth 401k Conversion option available. In my plan it's called "In Plan Roth Rollover", which takes the funds from the pre-tax side of the 401k and moves them to the "Roth" side of the same 401k.
I processed an in plan conversion from 401k to In Plan Roth. I assume I will get a 1099 for that amount?