The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  401k to IRA, and other issues Date:  2/2/2000  4:47 PM
Author:  Frontosa Number:  18632 of 88063

Here's the situation:

I contribute to my current company's 401k. I have a 401k from a previous employer that I would like to rollover into an IRA so that I can Foolishly manage it on my own. I am also considering contributing to an IRA on my own.

From what I've read of IRS Pub 590, and this board, I can only rollover that 401k into a traditional IRA. Also, any contributions that I make into an IRA won't be tax deductible since I am covered by 401k.

It seems to me that for my future contributions, I should setup a ROTH IRA.


Did I read correctly that earnings from Roth are tax exempt? If so am I correct that at retirement, the distributions from Roth are tax free, as opposed to Tradition IRA that is taxed as standard income? I've had trouble figuring out if there is a limit on AGI for contributing to ROTH, what is the story here?

Once my 401k is in an IRA, would there be much reason to convert to a ROTH? The size of this one won't be larger that $15k, and my contributions (outside 401k) would not go into this IRA.

BTW: I will still be contributing to my corporate 401(k) approaching maximum.

Thanks for any input.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us