MMC Benefits Handbook
Maximum Number of In-Plan Roth Conversions
There is no limit on the number of in-plan Roth conversions you may request in a calendar year.
Request an In-Plan Roth Conversion
You may request an In-Plan Roth Conversion Request Form and Special Tax Notice by calling HR Services at +1 866 374 2662 or go online. If you are an active participant, go to Colleague Connect (https://mmcglobal.sharepoint.com/sites/Home). Select Pay & Benefits, and click My Pay & Benefits, select Transamerica under Savings & Financial Planning.
If you are a terminated employee, go to https://careers.marshmclennan.com/global/en/us-benefits and select Transamerica.
You will receive your in-plan Roth conversion in accordance with your elections on your In-Plan Roth Conversion Request Form.
Forms received in good order by 4 p.m. Eastern time will be processed on a daily basis during any business day. However, if you submit a request on the last two business days of the calendar year, the conversion will be treated as a tax event for the following year.
If you have a valid email address on file, you will receive a confirmation statement via email; otherwise, it will be mailed to your address on file generally within two business days of processing.
Available In-Plan Roth Conversion Amount
You must convert a minimum of $1,000 or 100% of your after-tax account balances, if the collective balance is less than $1,000. You may convert all of your after-tax account balances or any portion that is equal to or greater than the minimum amount.
In-Plan Roth Conversion is Irreversible
An in-plan Roth conversion is irreversible once it has been processed, and the conversion cannot be recharacterized in any way.
In-Plan Roth Conversions that Include Marsh & McLennan Companies Stock
When you make an in-plan Roth conversion, you can elect whether to include any after-tax account balances invested in the Marsh & McLennan Companies Stock Fund as part of the conversion. If you include your after-tax account balances in the Marsh & McLennan Companies Stock Fund, while your stock will be transferred to the in-plan Roth conversion accounts, you must pay taxes based on the fair market value of the shares at the time of the conversion. Please be aware that if you convert after-tax account balances invested in the Marsh & McLennan Companies Stock Fund, the potentially available special tax treatment for any "net unrealized appreciation" (NUA) on employer stock will be lost.
Please refer to the "Tax Treatment of an In-Kind Distribution of Marsh & McLennan Companies Stock" for additional details about the special tax treatment for NUA on employer stock.
Withdrawals from the In Plan Roth Conversion Accounts
The Plan does allow a separate in-service withdrawal from the in-plan Roth conversion accounts.
Request a Withdrawal
You can request an in-service withdrawal from the in-plan Roth conversion accounts at any time. The same withdrawal rights that applied to your after-tax contributions prior to the conversion will apply to your in-plan Roth conversion accounts after the conversion. Keep in mind, however, that you may be required to pay income taxes and an additional 10% Federal early withdrawal tax on the investment earnings attributable to your in-plan Roth conversion accounts if certain eligibility requirements are not met. Please review this section for more information on your withdrawal rights as an active or a terminated participant.
Loans are not permitted from in-plan Roth conversion accounts. However, your entire in-plan Roth conversion account will be used to determine the total amount you can borrow from your account. In other words, you can take up to 50% (up to a maximum of $50,000) of your entire vested account balance as a loan.
Required Minimum Distributions
The amounts converted to in-plan Roth conversion accounts are subject to the Internal Revenue Service required minimum distribution rules while held in the Plan. These rules generally require that when you turn age 72 (if you were born after June 30, 1949) or age 70-1/2 (if you were born before July 1, 1949) (or retire, if later), you must receive minimum amounts from the in-plan Roth conversion accounts each year. Please refer to the "Required Minimum Distribution" for more information about required minimum distributions.
However, if you're still employed by the Company when you reach age 72 (if you were born after June 30, 1949) or age 70-1/2 (if you were born before July 1, 1949), you can defer taking distributions until you leave the Company.
Taxes and Tax Reporting
You will pay taxes on the money you convert to in-plan Roth conversion accounts. The taxable portion of an in-plan Roth conversion will be treated as taxable income in the calendar year of the conversion. Because the conversion can be made only from after-tax accounts, the taxable portion of the conversion is generally only the investment earnings on the contributions converted.
You will not have to pay the 10% Federal early withdrawal tax at the time after-tax amounts are converted to in-plan Roth conversion accounts.
There will be no income taxes withheld at the time after-tax amounts are converted to in-plan Roth conversion accounts. You will receive a Form 1099-R in January of the year following your in-plan Roth conversion that will show the taxable amount of the conversion as part of your taxable income. Before making an in-plan Roth conversion, you should think about the higher tax liability in the year of the conversion and how you will pay any resulting increased income taxes. For example, you may want to consider making estimated tax payments in advance of the filing deadline or increasing your tax withholding. Before making your decision, we strongly recommend that you consult with your tax advisor or financial professional to help you determine your potential tax implications.