Asset Protection Planning – The Conversion of the 401(k) Roth Account Under the New Law*

Until December 31, 2010, taxpayers with an IRA or 401(k) plan have the option to convert to a Roth IRA, report the income tax over 2010 and 2011, and avoid the income taxation upon subsequent withdrawal. (The taxpayer may elect to recognize all of the income in 2010). The recent enactment of The Small Business Jobs and Credit Act of 2010 (the “Act”) will now allow the conversion of Employee Retirement Income Security Act (“ERISA”) qualified 401(k) plans to Roth accounts. Asset Protection Alert: […]

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