Wisconsin Adopts Federal Law Authorizing Roth Conversions Within 401(k) and 403(b) Plans

Brian L. Anderson

The Wisconsin Budget Bill enacted on June 26, 2011, amended Wisconsin tax law to be consistent with federal tax law authorizing “In-Plan Roth Conversions.” In-Plan Roth Conversions, also known as In-Plan Roth Rollovers, allow 401(k) and 403(b) plan participants, under certain circumstances, to transfer funds from an eligible non-Roth account to an after-tax Roth account within the same plan. Wisconsin’s adoption of the In-Plan Roth Conversion feature of the federal tax code is important for three reasons.

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