2007-01-28 03:05:50 · 3 answers · asked by cleanfanatic 2 in Business & Finance ➔ Taxes ➔ United States
I did abbreviate the question a bit. My husband will retire and I will continue to work. So, his 401(K) will end and we have to roll it over. We do not want to leave it with the company. I wasn't sure if we were limited to the annual contribution limit.
2007-01-30 10:17:37 · update #1
Yes you can but you have to first roll it into a Traditional IRA. Traditional IRA grows tax deferred where as a Roth is Tax free. Therfore Uncle Sam needs the taxes before going Tax Free into a Roth. If you plan on rolling your $$ back into another 401K then put it into a Traditional/Conduit IRA.
2007-01-28 03:12:24 · answer #1 · answered by Beautiful Disaster 2 · 1⤊ 0⤋
TW is right. Take Jennifers advice and go into a Traditional IRA.
If you are still working for the company that allows you this 401k, I don't think you can do anything at all with it...I'm assuming you no longer work there?
Here is some more help...
check this page and it should answer your questions. If you have a Northwestern Mutual Agent in your area, I suggest you call them. They are one of the most trustworthy companies in the US, not to mention the strongest.
http://articles.citringroup.com/Rolling-your-401k-Contributory-IRA-vs-Rollover-IRA.id.219.htm
2007-01-28 05:48:19 · answer #2 · answered by emaaaazing! 4 · 0⤊ 0⤋
Yes, but you will pay taxes on the amount rolled over. It will be taxed as ordinary income in the year that it is rolled.
2007-01-28 03:12:07 · answer #3 · answered by T W 2 · 1⤊ 0⤋