President Obama signed the “Small Business Jobs Act of 2010” (H.R. 5297) into law on Monday, September 27, 2010. 

One of the key Roth provisions in the bill - effective immediately upon enactment - will permit Roth conversions within employer-sponsored plans such as 401(k) plans, 403(b) plans, and 457 plans.

Given the significant media attention surrounding the general 2010 Roth conversion changes, the new "in-plan" Roth conversion alternative is likely to garner significant media attention and trigger numerous inquiries from plan sponsors, plan participants, advisors, and retail investors alike.  While the new in-plan Roth conversion option resembles the Roth IRA conversion option in many ways, there are a number of substantive differences between the two alternatives.  Accordingly, both business plan providers and IRA providers alike must be prepared to address the numerous questions that will arise as advisors and clients strive to understand the implications of the new law.

For access to the archived webcast presented on September 30, 2010, covering the new in-Plan Roth conversion provisions of the Small Business Jobs Act of 2010, please reach Connie Spaulding at 218-824-4903 or connie.spaulding@convergentrp.com.  The fee for the archived session is $295.

Some of the topics we will explore during the webcast include

• the effective date and plan amendment  implications,
• which plans can and cannot allow in-plan conversions,
• which plan balances are potentially eligible for in-plan conversion,
• the circumstances under which plan participants can be allowed to convert,
• the pros and cons of an in-plan conversion versus a conversion to a Roth IRA,
• the potential implications for plan recordkeepers and plan administrators,
• the likelihood of wide-spread in-plan conversion activity, and
• the potential benefits of a proactive communications strategy.