Permalink Submitted by Alan Spross on Wed, 2008-10-29 20:14
Yes, and it just became effective 1/1/2008 under Sec 824 of the Pension Protection Act.
The employee must meet the plan requirements for qualifying for an eligible rollover distribution, and that typically does not become available until after separation from service or reaching an age threshold such as 59.5.
Also, the 100,000 modified AGI limit continues to apply to these conversions until 2010. The pre tax portion of such a direct rollover will of course be taxable at the marginal tax rate.
Permalink Submitted by Alan Spross on Wed, 2008-10-29 20:14
Yes, and it just became effective 1/1/2008 under Sec 824 of the Pension Protection Act.
The employee must meet the plan requirements for qualifying for an eligible rollover distribution, and that typically does not become available until after separation from service or reaching an age threshold such as 59.5.
Also, the 100,000 modified AGI limit continues to apply to these conversions until 2010. The pre tax portion of such a direct rollover will of course be taxable at the marginal tax rate.