Time for a 'Roth Review' With Retirement Plan Clients

It’s time for advisors to schedule a Roth conversations with each of their retirement plan clients, according to ERISA attorney Brad Campbell with Faegre Drinker.

Why? Because the Setting Every Community Up for Retirement Enhancement (Secure) 2.0 Act “provides new mandatory and new optional new Roth issues to consider,” Campbell, a former head of the Labor Department’s Employee Benefits Security Administration, said on the law firm’s recent Inside the Beltway webcast.

“Every plan needs to have a Roth review this year,” Campbell said.

In separate comments to ThinkAdvisor, Campbell relayed that before Secure 2.0, “plans had the option of allowing employees to elect that employee contributions be made on a Roth basis.  Some plans adopted this provision, most did not.”

Secure 2.0 “expanded that to give plans the option to allow employees to elect to receive both employee and employer contributions on a Roth basis,” Campbell said.