Should You Convert Your Traditional 401k to a Roth 401k?

One of the more interesting provisions in the recently passed American Taxpayer Relief Act (ATRA) is the ability to do a Roth conversion within a 401(k) plan. Before January 2nd, employees were mostly prevented from moving assets from the traditional, pre-tax portion of their 401(k) to a Roth component of the same 401(k) plan. While it was available to those employees who otherwise were eligible to take a distribution from the plan, that was rather limited. With the passage of ATRA, Congress has opened up the opportunity for anyone to move assets from the traditional, pre-tax portion of the 401(k) plan to the tax-free, Roth portion of their 401(k).