The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: ROTH 401K to ROTH IRA||Date: 8/16/2013 8:00 PM|
|Author: TMFPMarti||Number: 119024 of 125703|
Uh, no, you can't do that. Non-Roth contributions roll into a traditional IRA if they roll anywhere. You might want to look into correcting this since it's a 6% excess contribution penalty if the IRS catches on.
Fidelity managed the separate transactions, and issued 1099Rs for the transactions. They said they could and would do the transfers.
I guess I chose bad wording. I have no doubt that it was done since you said it was. My point is that it's not allowed by tax law. I'll remind you of what I often say regarding financial service providers and tax law. There's a reason their fine print says don't rely on us.
Were I your husband I'd get an opinion from someone who knows tax law and can be held responsible. But it's his money, not mine.
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