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https://boards.fool.com/i-have-money-in-a-457b-plan-that-i-contributed-34680936.aspx
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| Subject: Re: Can I use 457b (deferred comp) for Roth IRA? | Date: 11/29/2020 10:03 PM | |
| Author: aj485 | Number: 131408 of 132106 | |
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I have money in a 457b plan that I contributed pre-tax money every month. I am no longer working, retired May 2019. Can I add the limit for 2020 to my Roth IRA by taking out money from the 457b and paying taxes on it? If you are asking if you can make a contribution to your Roth IRA - no you cannot, since the income from your 457 is considered to be pension income, not compensation. In order to make regular contributions to either a Traditional or a Roth IRA, you must have compensation income. You can see what's considered compensation in IRS Pub 590a https://www.irs.gov/pub/irs-pdf/p590a.pdf However, you can convert as much money as you want from your 457 into your Roth IRA - the only limit is how much you want to pay in taxes. Be aware, if you actually take the money out of the 457 and put it into your checking/MM/etc. account and then send the money to your IRA, that's considered a non-trustee-to-trustee rollover, and you are limited to one of those every 365 days. So it's best to do a trustee-to-trustee rollover, as you can do as many of those as you want. AJ |
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