When I spoke to someone at the IRS last year, I was told that the then unwritten IRS position was that qualified plans were not required to permit direct rollovers to Roth IRAs in 2008 and later years (i.e., they were taking the view that such rollovers were optional, which was the same strained reading that they gave to the PPA provisions dealing with direct rollovers to inherited IRAs by non-spouse beneficiaries). Has the IRS officially said anything as to whether qualified plans must permit direct rollovers to Roth IRAs?

I heard informally from the IRS that they are now leaning toward the view that rollvoers to Roth IRAs must be permitted, and that more guidance will be issued in the very near future.

Am I correct that Q&A-4 of Notice 2008-30 (to which PGH.ERISA alerted us ... thank you)
clarifies that plans must permit direct rollovers of eligible rollover distributions to a Roth IRA?

As GMK points out, Notice 2008-30 seems to settle the matter on the side of requiring that plans permit the rollovers.

I agree that it is mandatory. Interestingly, just a couple weeks ago, I heard from a superior of the person at the IRS with whom I had spoken, who said that the then current view at the top of the IRS was that Roth IRA direct rollovers were not mandatory. I don't know what caused the apparent sudden change in views.