Had to move 401K to IRA. Can I now make it Roth IRA?

Yes, you can, and probably should. Do you think you'll get a new job this year? If the amount is large enough, you may want to move it a portion at a time, or plan to recharacterize back if your income is high this year. The new tax laws added a provision allowing conversion from 401(k) to Roth IRA with no stop in between, but no harm either way. JOE

Yes, with taxes due on conversion.

Taxes are not instantly due on a ROTH conversion. Taxes are due for the year of conversion, so quarterly estimated payments would be required for any significant amount converted.

Hmm, I didn't know you could convert them, and wouldn't have thought it would be a good idea even if you could. Maybe I should consider this...

I'm 26, and have a rollover IRA with money from a previous employer. My current employer offers 401k but no matching. I'm about to open a Roth IRA and begin contributing the maximum per year to that. Once that's done, if I have anything left over, I'll put it in my company

I guess the whole point of my focus on Roth IRA is the fact that I know I'll be in a higher tax bracket when I retire, so it makes sense to pay tax on the savings now at a lower rate, rather than defer it and pay later at a higher one. So, by that logic, if I can convert my rollover IRA to a Roth and pay tax on it now at that same rate, I should. Interesting.

snipped-for-privacy@gmail.com wrote: snip

wouldn't have thought

Two points, when you leave a company (you imply you have frequent job changes) it's probably good to move the money to your IRA, don't want a half dozen 401(k)s left behind.

Why are you so sure you will be in a higher bracket at retirement? Either way, being aware of your current bracket (certainly a known figure, or knowable) and an idea of how your aiming toward retirement can help guide your decisions. People with variable incomes have a great opportunity to manipulate this way, converting at 15% in bad years, building a retirement fund that may avoid taxes completely.

JOE

Good question JOE. Everyone touts diversification to remove non- systematic investment risk, but tax risk is often overlooked. No matter how confident we feel about our future (tax wise, in this case) we simply cannot know what Congress will do (over 40 years in the OPs case)! Look how much has happened just in the recent past. Roths have only been around for a decade and IRAs didn't appear until the early

Of course, if you are in a 0 - 15% tax bracket you almost have nowhere to go but up. You never know though!

Is there a time limit on converting from rollover IRA to Roth tho?

Can I say leave it as a rollover IRA for maybe 6 months.... THEN xfer to a Roth?

I'm currently back I college and hope to be full time next year

never went to college out of high school

Amt is abt 18k...should I dollar cost average into the Roth?

My income will be LOW this year

No.

Sure, there are income limits on rollovers, but not time limits.

-Will

Look at

Great

Thanks al!!