The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: 401(k) xfer to Roth IRA Date:  8/14/1997  8:24 AM
Author:  JeanDavid Number:  180 of 127753

<Can after tax 401(k) contributions be 'rolled over' into a Roth IRA? Without penalty? >

I am NOT TMF Taxes, so bear that in mind.

From what I have read, you can roll a 401(k) over into a Roth IRA (if your 401(k) permits it) without penalty, unless you consider paying the income tax on the entire current value of your 401(k) to be a penalty. I WOULD consider that a penalty, considering that it would definately put me in a higher incremental tax bracket, but I am considering a rollover anyway to avoid paying any future tax on the money, especially the 15% excise tax on excess distributions. I do not have enough information yet to make a decision. I would like to see an up-to-date version of IRS PUB 590 before deciding. This will not be available until 1998, I imagine.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us