Also, can I move a 403B into the same IRA? Thanks again..
2007-02-01 07:57:20 · 3 answers · asked by Sparky 1 in Business & Finance ➔ Personal Finance
You can roll over a 401k and a 403b into a conventional IRA. There are no tax consequences. In all three cases, the contributions are in before-tax dollars, and both the savings and the interest are tax deferred.
If you are thinking about changing from a 401k to a Roth IRA, think twice before you do it. You would have to pay taxes, at your current rate, on everything you move from the 401k to a Roth IRA. If you are still working, it might be better to start a Roth IRA with new net income.
2007-02-01 08:13:14 · answer #1 · answered by regerugged 7 · 0⤊ 0⤋
If your 401k has both pre-tax and after tax contributions in it them you need to have two separate IRAs. That way when you go to withdrawal from them at retirement you will be taxed correctly. The IRAs can be with the same company but need to be separate accounts. They should be able help you set the rollover from the 401k correctly.
2007-02-01 11:47:30 · answer #2 · answered by stlouiscurt 6 · 0⤊ 0⤋
After-Tax...
If it's a direct trustee-trustee transfer the after-tax contributions can go into your IRA. You can't act as an intermediary or take the after-tax in cash and then decide to roll it over later. The receiving institution will be told how much is after-tax and how much is tax deferred.
403(b)
Yes, the 403b can go into the same IRA.
2007-02-01 08:06:40 · answer #3 · answered by digdowndeepnseattle 6 · 0⤊ 0⤋