My company was sold and the company's Employee Stock Ownership Plan was terminated as a result of the sale. All participants are, of course, required to take distributions either in the form of a rollover or in cash or a combination of the two. I would like to rollover my distribution into a *ROTH* IRA account. I already have a Roth IRA account at Vanguard. I understand that I will have to pay taxes on the rollover this year. I have been unemployed by choice in
2008, so this would actually be a very good year to pay additional taxes as so far, my earned income for 2008 is $0. I have non-IRA money set aside to cover the additional taxes. Hopefully I have already answered the questions you would ask.
So here is my question: In the IRS literature, it says "After 2007, you can rollover amounts from the following plans into a Roth IRA: A qualified pension, profit-sharing or stock bonus plan (including a
401(k) plan),..." I looked at the ESOP Summary Plan Description and it says "This Plan is a qualified retirement plan commonly referred to a an Employee Stock Ownership Plan." Does an ESOP qualify for the rollover into a Roth IRA? Is there any reason I can't?
(IRS reference
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1213,00.html) Thanks for your help! Heather