The advice posted assumes that the OP has a pre-tax 401(k) plan [the most common offered by employers]. So, yes, in this scenario taxes would be owed if the 401(k) is rolled over and converted into a Roth IRA (post-tax).However, there are some Roth 401(k) plans out there. I know because that's how I elected to set up my plan with my employer. In my case I would be able to rollover the 401(k) into a Roth IRA with no tax consequences at some future date [after switching jobs, of course].
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra