As part of the fiscal cliff deal, officially known as the American Taxpayer Relief Act of 2012, more individuals will have the option of converting their traditional 401(k) into a Roth 401(k), CNNMoney reported.

The new provision is expected to generate billions of dollars in government revenue, as those who decide to make the conversion would have a front load tax liability. Individuals would pay taxes on the funds transferred; however, future gains or withdrawals would be tax-free.

Experts say the new retirement savings option will give more retirement savers greater flexibility.

Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.

"It's certainly something people should look at and consider," T. Rowe Price financial planner Stuart Rittertold CNNMoney. "It's an option you didn't have before."

Prior to the new provision and according to 2010 legislation, Roth 401(k) conversion was only allowed for savers with what was known as "distributable" funds, or the small group of individuals that primarily include people aged 59 1/2 or older.

With the new rules, a Roth conversion would be available to any person with a traditional 401(k) and an employer that offers a Roth account and conversion.

The new conversion opportunity is best suited for individuals in lower tax brackets who have additional cash, such as young professionals or those who are making less income than typical years or anticipate making a significantly higher income in the future, CNNMoney noted.

However, the new rule does not change anything regarding converting a traditional individual retirement account (IRA) into a Roth IRA, according to thefinancebuff.com. It is only for converting to Roth 401(k)/403(b)/457 within the same plan.

Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.