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| Subject: 401k to IRA, and other issues | Date: 2/2/2000 4:47 PM | |
| Author: Frontosa | Number: 18632 of 74759 | |
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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. Questions: 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. Frontosa |
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