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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124931  
Subject: Re: 401K to IRA to Roth IRA ? Date: 2/22/2000 6:01 PM
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<< I am quitting my job this month. I plan to roll my 401K (approx $30,000) over to IRA. >>

Good planning. You should roll it into a new account, not mixing it with a contributory account.

<< After this transaction is done, can I roll this amount into a Roth IRA account? I know that I might have to pay taxes up front (for the $30,000). >>

Yes. Once it's in a traditional IRA, you can do anything with it you want to. As long as you leave it in a separate account, you have more options. Read up on "conduit" IRAs in the FAQ.

<< I also have a personal IRA already (worth about $15,000) -- would it be a good idea to leave this account alone or to roll it over to Roth IRA as well? >>

The additional 401(k) money doesn't really affect this decision. I believe "convert/not convert?" is also covered in the FAQ.

Phil Marti
Tax Preparer
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