No. of Recommendations: 3
I know that the initial rollover does not count as a contribution.

Good. I was just making sure we covered all the bases.

But, according to info from the IRA section of this website, and from the IRS website, since I am in a 401(k), given our AGI I cannot make future contributions to this IRA....they are phased out to zero.

OK. But that's not quite correct. You CAN make contributions to this IRA. But because of your income and participation in your employer's pension plan, you cannot DEDUCT the contribution. There's a big difference.

I was not aware of this AGI/401(k) formula when I opened the IRA.
So, roll it to my current 401(k) or convert to Roth?


All I'm saying is that it's not necessary to do either of these. You can leave this money alone in it's rollover IRA while continuing to participate in your employer's 401k AND while making contributions to a new Roth IRA.

The decision to roll your old 401k money over or convert it to a Roth is a separate decision.

My personal take is that a $1 in the hand is worth more than some possible tax savings in the future. I doubt that congress will be able to resist temptation and leave Roth's alone long enough for me to enjoy tax-free withdrawls. (I've got to wait almost 20 years for that to happen.)

So I've left my traditional IRA alone. I don't want to pay taxes now in the hopes that congress will let me take the money tax free in the future. But my future IRA contributions will be to a Roth. For someone a bit older, the story could be different.

--Peter
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