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Author: bjskks Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: 403b to IRA Date: 1/31/2000 8:41 PM
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I recently got married and my wife has a 403b account from her old job that I plan to transfer to a Roth IRA(it's less than $2000). I also have a Roth IRA but it is in my name. I spoke to people at Schwab, where my account is, and they said that I couldn't transfer her money into my account because it is an "Individual" retirement account, thus the name! So they said we each had to have separate accounts which makes sense and is fine, and that we can each contribute $2000 a year if we meet the income qualifications, etc. But then when I asked if I can then contribute her $2000 to the transfered account each subsequent year, they said that for tax reasons it would not be a good idea and that I should have a different account for contributions versus transfers. Why is that and what should I do?

Brian
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Author: ROBBDOE Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 18541 of 76418
Subject: Re: 403b to IRA Date: 1/31/2000 9:36 PM
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You need to transfer the 403b to a rollover IRA and then convert it to a Roth IRA. You can't go directly to a Roth. You will have to pay the taxes on the conversion amount(from rollover to Roth).They want you to have seperate accounts so you don't co-mingle after tax money with pre tax money. All contributions to the Roth are made with after tax dollars and all contributions made to the rollover IRA were made with pre tax dollars. If you co-mingle the funds you will not be able to transfer the rollover into another company sponsored plan down the road.
Robbdoe

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