The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/aj-based-on-the-description-the-op-gave-in-the-28438326.aspx

Subject:  Re: Company-funded profit sharing retirement acc Date:  4/13/2010  8:41 PM
Author:  55526 Number:  66950 of 75540

AJ,

Based on the description the OP gave in the post I just assumed it was qualified. He/she mentioned profit sharing retirement account in the subject line, ability to borrow from the plan, but the requirement to pay it back. The mention of a vesting percentage and the requirements and the company's annual deposits. I appreciate your point and should have qualified my comment based on my assumption.

Assuming it is a qualified profit sharing plan I was not aware that you could move employer money directly from the plan into a Roth IRA as I was under the impression that Roth contributions were employee money and since it would be employer money in the profit sharing plan it had to be moved to the conduit first then the Roth, so I appreciate your insight.

In the articles I've read about the 2010 Roth conversion I've seen it written both ways, using spreading out the taxes and/or the income. Ultimately by splitting the income into those two years you are effectively splitting the taxes over that two year period.

Not knowing what the current administration will do with the tax rates after 2010 does make the decision to pay the tax in 2010 or 2011/2012 much more difficult for the higher income earner, especially as you mentioned if the amount of the conversion is substantial.

I appreciate your comments and will make sure I give a more detail, including my assumptions, when responding.
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us