The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: ROTH 401K to ROTH IRA||Date: 8/16/2013 11:00 AM|
|Author: TMFPMarti||Number: 119013 of 121338|
Is it possible to convert a ROTH 401K to a ROTH IRA?
Yes, but I'd call it a rollover, not a conversion. It works just like a rollover from a traditional 401(k) to a traditional IRA.
While we're on the subject of Roth 401(k)'s, an oddity that affects people approaching their 70 1/2 year. Unlike Roth IRAs, Roth 401(k)'s have Required Minimum Distributions (RMD's). Since the 401(k) must distribute an RMD before completing a rollover it's important to move the account to a Roth IRA before January 1 of the year you turn 70 1/2 if you don't want the RMD to happen.
Rule Your Retirement Home Fool
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|