No. of Recommendations: 0
<< I have a 401(k) account setup with my employer (with matching contributions and all that good stuff), and I am looking into opening an IRA account. I initially felt that I should go for the Roth, but, I think that within the next 5-6 years (hopefully less!!), I will probably lose the privelege to contribute into it (as my AGI will probably increase above the limit). At this point, can I convert the Roth back into a normal IRA? Taking this into consideration, should I still go for the Roth, or just stick with a normal? >>

You could not convert a Roth IRA to a traditional down the road, nor would you want to. Assuming you can afford it, contribute the max to your Roth while you can. When your income reaches the point that you can no longer make new contributions, the Roth will continue to grow tax-free until your retirment. When you no longer qualify for Roth contributions because of your income, you can start making nondeductible traditional contributions.

<< Another question I had was--If and when I decide to move from my current company, is it mandatory that my 401(k) account be closed (since it was set up with them)? If so, I can't transfer into an IRA Rollover account, since I would hypothetically already have a Roth or normal IRA account (right?--from what I understand, an individual cannot have both a rollover and a normal/roth IRA account). >>

You've misunderstood something along the way. You always have the option, when leaving an employer, to move your 401(k) to a conduit traditional IRA.

<< Keeping the 401(k) would be ideal, i would think, if it is possible, but if not, what then? >>

This issue is discussed frequently on the Foolish 401(k)'s board. Check it out.

Phil Marti
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.