GM Roth In-Plan Conversion Option

In 2017, the combined pre-tax and Roth 401(k) contribution limits for your General Motors 401(k) is $18,000. For participants age 50 and over, a $6,000 "catch up" contribution is allowed.

While the Roth 401(k) feature has been available within the Plan for a few years, General Motors has also enacted a newer IRS provision which allows you to convert traditional 401(k) savings to Roth savings within the Plan. This option is known as an "In-Plan" Roth conversion.

GM 401(k) participants can now contribute even more than the combined pre-tax and Roth 401(k) contribution limits above into the RSP or PSP and then use the Roth "In-plan" conversion to establish tax-free growth and tax-free distributions on far more than those limits each year. In fact, you can contribute up to $54,000 or more each year!

This can be a complicated subject and any action may have varying tax implications. To learn more about the “In-plan” provision and its merits in increasing the amount of Roth and tax-free contributions to your RSP or PSP, contact Mainstay toll-free at 1-866-444-6246 to speak with one of our Certified Financial Planners^TM. We can provide assistance and help you evaluate the benefits of the Roth "In-plan" conversion.