"Is a Roth IRA available for this type of rollover?" To put what you've already been told just a little differently, yes, but it is a two-step process. You roll your 401k to a traditional rollover IRA. There is no tax due as long as you make it a trustee-to-trustee transfer and do not yourself take possession of the money at any point. You have the 401k trustee send the check to your new IRA trustee. Orthey can send the check, made out to the new trustee, to you, so you see the amount of the check and that they did indeed issue it. At this point you have the right to make a further conversion into a new employer's 401k if you so desire and the new employer accepts. The next step involves taxes. If you then want to convert the new traditional IRA to a Roth, and your trustee accepts the Roth, you can direct the trustee to make that conversion. Tax will be due on the non-taxed amount of the conversion, based on the value of the conversion on the date of the conversion. Also at this pointyou lose the right to subsequently convert to a new employer's 401k. Before making such conversion, be sure your income level for the year will fall into the range making you eligible for a Roth conversion. If you make a mistake, you can "recharacterize" your Roth back to a traditional IRA, but the trustee will charge you a fee for doing it, plus there will be paperwork and some trouble. Good luck! Chris
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