No. of Recommendations: 0
You can't roll a 401k directly into a Roth. You have to establish a tradional IRA as a conduit. Then you can transfer that into a Roth if you wish.
If you contaminate your conduit or rollover IRA with even $1 of contributed money, it is nolonger a rollover IRA and you lose the right to roll it into a future 401k of a future employer. If you leave the rollover pristine, uncontaminated, you maintain that right. Since managing your own IRA is likely to give you lots more options than you have with a future employer's 401k, the value of that right is questionable, but that's a different topic.
Yes, you can have both a traditional IRA and a Roth IRA, and in the scenario you give it makes sense to do so. You can also have more than one tradional and more than one Roth. The paperwork and maybe the expenses mount, but you can. However, you cannot contribute more than a total of $2000 to IRAs for a given year, no matter how many you have. Best, Chris
Print the post  

Announcements

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!
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