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Author: tjvc Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75528  
Subject: 401K to Roth? How? Date: 10/31/1999 8:44 PM
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I am leaving one company for another and have heard I can transfer the money from my old 401K into my current Roth IRA (which I will be taking personal control of at the end of the year). How do I go about it?
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Author: TRYSTERO Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14980 of 75528
Subject: Re: 401K to Roth? How? Date: 10/31/1999 9:44 PM
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I know very litle about this, but I am
in the process of rolling over a 403B
to a regular IRA. My first choice was a
Roth but when I was told that I would
lose about 30% of the money in taxes,
transfering funds from a tax deferred
(403B, or 401K) to a nontax deferred
Roth IRA. I opted for a regular IRA,
where I could invest 100% of the money
in a tax sheltered stocks portfolio of
Foolish four picks. I'd rather pay
Uncle Sugar when I take it out in 15 to
20years, so I can use that thirty
something percent now to increase the
innitial investment in the Foolish four
portfolio. But hang in there, people who
really know what they're talking about
will be along pretty soon to give you
their views, and to explain why I'm wrong.

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14985 of 75528
Subject: Re: 401K to Roth? How? Date: 11/1/1999 9:53 AM
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Greetings, Tjvc, and welcome. You asked:

<<I am leaving one company for another and have heard I can transfer the money from my old 401K into my current Roth IRA (which I will be taking personal control of at the end of the year). How do I go about it?>>

The only way you may transfer your old 401k money to a Roth IRA is to first transfer it to a traditional IRA. Once in the traditional IRA, the funds may then be further transferred to a Roth IRA. On transfer, the proceeds become taxable to you. As to how you do that, any IRA provider can walk you through the necessary steps. The real question is should you do it. And unless you can pay for the income taxes due on that transfer out of assets other than those now in the 401k, the answer is generally no. For details, see my analysis on this board in post number 1567 at http://boards.fool.com/Message.asp?id=1040013000441002&sort=postdate . You must do a similar analysis to see how it would work for you.

Regards..Pixy

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