No. of Recommendations: 0
teletran: "Actually, you can do a direct rollover from your employer's 401k to a Roth IRA account."

This is not correct. As Crosenfield points out, you can do a trustee-to-trustee transfer directly to a traditional IRA, NOT a Roth IRA.

"You would need to contact the benefits department and the IRA company for the necessary rollover forms."

Agreed.

"As long as you do a direct rollover and the money therefore never touches your hands, there would be no tax consequences."

Once direct rollover is correctly understood, agreed. As Crosenfield points out, converting a traditional IRA to a Roth IRA will have tax consequences, although it can be done without penalty.

Regards, JAFO
Print the post  

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
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.
Advertisement