401(k) Rollover Bill Passed by Congress- H.R. Bill 5297

By Alison Murray & Yariel Chiong

With the recent passing of H.R. Bill 5297, 401(k) participants of eligible plans can immediately roll over all or part of their account balances into a Roth 401(k) Plan. To allow for this the plan will need to be amended. Consideration should also be made as to the viability of allowing Roth conversions within the Plan as well as allowing for Roth deferrals. If the rollover is made this year, the participant can elect to pay the tax on the money rolled over in equal parts in 2011 and 2012 helping to ease their tax burden. These rolled over funds will earn tax-free investment income and will not be taxed when the participant receives a distribution.

Depending on the participant’s tax bracket and future tax bracket this could reduce their tax liability. Participants considering this should ask themselves:

• Can I afford to pay the taxes over the next 2 years?
• Do I anticipate being in a higher tax bracket when I retire?
• Do I feel confident that the taxes I pay now would be less than the taxes I would pay later if I did not convert funds into a Roth 401(k) resulting in a financial benefit to me?

Contact your ACI Plan Administrator if you would like more information.

Ever Wonder What Clients Think About Your Business?

By Yariel Chiong

At ACI, we have built a brand that truly believes in being client centered; always putting the client first and listening to their comments and suggestions. We wanted to take a moment and just brag on ourselves by sharing with you some of the great compliments our clients have told us recently:

“Alison - You are truly an amazing speaker who held my interest and explained everything thoroughly.”

“Hannah - You know no one ever really chooses to be put between a rock and a hard place but I'm just really glad that I came across you to help me with this. Know that I appreciate all you're doing.”

“Tobi - I have put ACI before my mother on my speed dial.”

We appreciate all the great compliments we receive from our clients and our ACI team shares them internally. ACI has been in business for over 26 years; one of the reasons we have been able to accomplish this is by having a staff who believes in creating happy and satisfied clients. ACI is able to repeat this experience for all our new and existing clients.

Tell us what you think. We’re not resting on our laurels here. Our goal is to make you a raving fan and then brag about what you say next!