I know that these questions must have been answered many times, but I have been away from the message boards for a while, and this subject has become important recently. I had a retirement account that I have rolled over into an IRA, and I have not made any further contibutions to it. I have just started working for a large corporation, and would like to just convert the current IRA into a Roth IRA, and in future years continue to fund it with $2,000/year. (I realize that in one information sheet that I have from E*Trade that you can't make any further contributions in the current tax year of conversion.) But my question is actually based an a call with E*Trade: I was told that, once converted, that you can't make ANY further contributions to the account. Is this something dealing with the five year rule? Or some other rule that makes contributing to the account a problem? Or is this just E*Trade's way of making you open multiple accounts for more commissions? Or... Is it true that you can't make any more contributions? I would like to keep things fairly simple - My current job's retirement, and one self-directed account. IF future contributions are not possible, I'd like to (and I know that this will generate some heat...) just roll the current IRA over into my current employer's 401(k), and just start a seperate Roth IRA on my own. (One minor benefit is that the 401(k) retirement age is 55 as apposed to 59 1/2). I am 36 years old, (more that 10 years from retirement) and would pay for the income tax resulting from the conversion out of other funds. Please give me some Foolish insight... Thanks
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