i will retire in '07, can i transfer my 401k money into a roth ira?

Answer 1

The short answer is YES. I would strongly suggest that you obtain professional advise from a Financial Advisor that is fully certified. It has to be done right, and you have to understand the other options that my be available to you also.Make sure you can work well with the advisor is a must.

Em

Answer 2

Whether or not you can withdraw the money from your 401(k) depends on the rules of the program. For example, in some plans you may have to terminate the plan and roll over the money. If you have left an employer, then that's a no-brainer: they aren't contributing any more, so you're probably better off rolling that into another IRA (and whether that's a Roth or 'traditional' is another story). The rules are always changing, so it's best to talk to the 401(k) administrator and/or a tax professional.

Answer 3

If it is a Roth 401K then you should be able to transfer directly into a Roth IRA with no tax consquences. Most likely though you have a traditional 401K and therefore should just roll it over into a traditional IRA. Then you'll get taxed when you later withdraw it.

I rolled my 401K into an IRA when I changed jobs. I did it through Charles Schwab. It was real easy to do with them.

Answer 4

Yes you can. However, the entire amount will generate ordinary income which Will add to your 2007 taxable income. You can also roll in into a regular IRA and avoid taxes until you draw money out of the IRA. Mandatory regular IRA withdrawals begin the year you become 70 1/2. There are no mandatory withdrawals from a Roth IRA.

Answer 5

If I'm not mistaken you can't transfer straight from a 401k to a Roth IRA. You must first transfer to a traditional IRA and then transfer that to a Roth. There are certain limitations that I'm not familiar with. You better check with your financial planner or benefits administrator.

Answer 6

You can, but be aware that you'll have to pay income tax on the amount transferred.