https://nwcm.com/wp-content/uploads/2016/09/New-Logo-for-Header.jpg 0 0 Fred Payne https://nwcm.com/wp-content/uploads/2016/09/New-Logo-for-Header.jpg Fred Payne2017-07-03 09:23:062017-07-03 09:23:06Can I change my mind about making my contribution as Roth or “traditional”?
- Yes and no.
- Once a contribution has been processed via a payroll, its designation as a Roth or “traditional” contribution cannot be changed.
- Subject to administrative rules regarding the frequency with which you can change the amount of your 401(k) deferrals, you can change how FUTURE contributions are designated as Roth or “traditional”.
- PLANNING TIP: If your plan allows for in-plan conversions, traditional, pre-tax plan balances can be changed to Roth account balances. This conversion is a taxable event and the tax liability must be paid with your annual tax return.