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The Directed Account Plan is pleased to announce an upcoming enhancement to the 401(k) Retirement Savings Plan. Effective June 1, 2011, The DAP will offer a new Roth 401(k) option.

To help you make more informed decisions regarding this feature, we have included the following FAQs, as well as posted Roth 401(k) educational information on Fidelity NetBenefits at

In-Plan Conversion

What is a Roth In-Plan Conversion?

Until now, if you wanted to convert your DAP account to a Roth, you would have had to cash out of the Plan and invest in a separate Roth IRA outside the DAP. With a Roth In-Plan Conversion, you can now directly convert certain plan assets in your account to a designated Roth account in the DAP.

Generally, you can only convert assets that are otherwise eligible to be distributed and rolled over depending on your plan’s provisions. Some examples include:

  • Assets in your 401(k) or 403(b) plan if you are age 59 ½ and the plan allows it – also known as an in-service withdrawal.
  • Assets left in a former employer’s 401(k) or 403(b) plan.
  • Assets rolled over from a former employer into your current employer’s 401(k), as long as they are held separately in the plan.

Do I need spousal consent to convert my assets to a Roth?

No, spousal consent is not required for an In-Plan Conversion.

How are taxes paid on the conversion?

Fidelity will not withhold taxes on the conversion amount. The responsibility to pay taxes lies with the participant. You may want to consult a tax or financial advisor on the best method to pay taxes owed, based on your individual situation.

How do I initiate an In-Plan Conversion?

Participants eligible for a Roth In-Plan conversion must initiate the transaction over the telephone. You can call 1-877-489-2327 for more information, or to get started.

For more information on a Roth 401(k), or to see if an In-Plan conversion makes sense to you, visit Fidelity NetBenefits and look for the Roth 401(k) fact sheets under Employer News. You may also contact a Fidelity Retirement Specialist for more information at 1-877-489-2327.


The Directed Account Plan Service Center

Keep in mind investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.

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