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).

Financial Planning for Generation Y

As a member of “Generation Y,” you are a young adult in your late teens, 20s, and early 30s, born between 1980 and 1994. Also called “Millennials” or “Echo Boomers,” you grew up amidst booms in the stock and real estate markets, only to see each of those “bubbles” burst. More educated than any prior generation, you attained those credentials during a time of skyrocketing educational expenses.