I am considering rolling over a small amount of money (20K) from my previous employer's 403b plan to a Roth IRA. My understanding is that in 2008 this can now be done directly rather than first going through a traditional IRA. I have two questions:
Thanks for any help you can give!
You want to be sure that conversion doesn't put you into the next tax bracket, if it does, splitting it over two years may make more sense. Taxes are due same as any other, by year end you have to have paid enough in, or be subject to penalties. You should not have tax withheld from the rollover itself, you should send money from post-tax funds.
VTTHX is the ticker. A .19% expense ratio, current mix is 72% MSCI US Broad market index, 15% MSCI EAFE Index, 10% Lehman U.S. Aggregate Bond Index, and 3% MSCI Emerging Markets Index. Nothing I can argue against. One can use it to avoid having to worry about allocation, the fund should self-allocate until the maturity date (at which time the mix will look like their Target Retirement Income Fund.)
JOE
Thanks Joe - I appreciate you help!
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