The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: Rollover 401(k) to Roth IRA?||Date: 1/12/2005 7:06 PM|
|Author: JAFO31||Number: 44008 of 80267|
"Thanks for your reply. My limited understanding of retirement accounts, and the marketing-oriented approach I had seen in the T. Rowe literature had me assuming you could get the best of both worlds by rolling over a 401(k) to a Roth IRA (tax free on the front end and back end). It was silly of me to think the IRS man would miss something like that!"
Your welcome. Just remember that I am no tax pro; the real pros hang on the Tax board, and tolerate interested kibitizers.
"I'm not sure I completely understand your comment. I'm with you up to the part in bold:
JAFO: <<<<"Your income appears too high, as a single, to contribute to a Roth for 2004. Your joint income will be borderline (but probably just under the cutoff for a Roth for MFJ status). I do not mean to be a pessimist or a jinx, but sht happens, so I would not open the 2004 Roth for you that presumes you will be married on 12/31/05 (i.e., do not count your chickens before they hatch). Your fiance probably should do a Roth IRA instead of a regular if she can afford the current taxes.>>>
"I think my income will just eek under the limit for 2004 (first time I've been hoping for lowered income!), and my finacee should be fine."
When I posted earlier, I forgot which board I was on, the Tax Board FAQ - http://www.fool.com/taxes/taxcenter/topics/topics.htm - has a whole Section dedicated to Retirement Tax