Understandably, there has been some confusion regarding the Roth conversion option. This is not something that will automatically happen within your account, and will only apply to those participants who request this type of conversion by completing the attached form.

Just a few reminders:

1. Although the IRS has not yet made a final determination, assume that Post-86 after-tax contributions cannot be converted without also converting the earnings on those contributions.

2. Eligible money sources may be converted to Roth without leaving the Plan or selling investments.

2. Converted pretax amounts are considered taxable income, but the 10% penalty does not apply.

3. Participants who request a conversion by December 23 have the option of including the taxable income in 2010, or recognizing the income equally over the 2011 and 2012 tax years.

4. Conversions may be requested in any year, for any amount. But if requested after December 2010, the pretax money will be taxed as income in the year of conversion.

5. There is no minimum or maximum amount for conversion, nor are you required to to convert an entire money source (employer match, for example).

6. Call me first if you want to discuss the amounts you may be eligible to convert.