A designated Roth Account (DRA), also known as Roth 401(k), Roth 403(b), and Governmental Roth 457(b) account, allows eligible employees to make Roth contributions to their accounts under plans provided by their employers. Participants may also convert amounts from the traditional side of their plan account to the Roth side as in-plan conversion.
Like Roth IRAs, distributions from DRAs are tax-free and penalty-free if qualified. But, while there are some similarities, there are also differences. This course examines some of these similarities and differences. Critical considerations for moving amounts from one DRA to another are also covered.
Learning Objectives
Upon completion of this course, participants will be able to:
Explain the contribution rules for designated Roth accounts;
Identify the operational and compliance requirements that apply to Roth conversions;
Explain the transfer or rollover rules that apply to Roth 401(k)s; and
Determine whether a Roth 401(k) distribution is qualified.
Major Topics
Roth 401(k) contribution rules
Direct and indirect Roth conversions
Direct and indirect Roth rollovers from qualified plans
