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URL:  https://boards.fool.com/lost-my-job-in-dec-14010590.aspx

Subject:  Lost my job in Dec. Date:  1/2/2001  12:49 PM
Author:  objviv Number:  26888 of 104830

Hello people,

I am new to this board, and tried to search for the situation I face, with no luck. I will greatly appreciate you folks taking the time to read this thru, and point me to the appropriate resource(s).

My situation is this,
1) I was laid off, with a 2 week notice, on Dec 4, 2000! (Yeah, another dot-com crash! What a great Christmas gift, eh?). Hence, effective Dec 15, I no longer work for my previous employer.

2) Now, I want to rollover my 401(k) to an IRA/Roth-IRA with my brokers. Hopefully into a self-directed account to invest directly in stocks.

3) I received the forms last week.

My questions are thus,
a) I wanted to rollver the 401(k) to a Roth IRA. Its already 2001. For what tax year, must I look for the AGI limitations?

b) For what tax year, must I account for the rollover? Thus, what tax year must I pay the taxes for?

c) I seem to be forgetting this, but the modified AGI; is that computed based on wages, salaries and tips MINUS the qualified 401(k) contributions amongst other things? The way I figure it, since we pay taxes on everything EXCEPT the 401(k) contributions, the AGI must take that into account. But, I can't find the relevant info in IRS publications either. It is too early to get the W-2, thus my question.

d) Even if the rollover must be accounted for tax year 2000, based on past experience, I will end up owing substantial taxes. Will I be stuck with paying the penalty for underpayment of taxes as well?

Thanks in advance!
- objviv


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