Financial Information
can you rollover 401k into an existing roth IRA?
Question : can you rollover 401k into an existing roth IRA?
I have a 401k with my job and a Roth IRA. I’m planning to leave my job soon (for school) so can I rollover my 401 into the current Roth IRA since it would be less than the annual contribution limit (about $ 2500). Or do I have to open a “Rollover IRA” and then maintain two separate IRA accounts?
401k rollover
Best answer:
Answer by tempting_butnothanks
you may have to maintain separate accounts. the traditional IRA hasn’t been taxed, while the Roth has. you can’t mix those apples & oranges.
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#3 written by Jed C 1 year ago
If you call the brokerage that holds your roth IRA, they would know for sure whether or not tax penalties would be imposed by rolling over a 401k to a roth.
I have rolled over my employers 401k to a 401k rollover account with my brokerage. I did not imcur any tax penalties and I can now buy the stocks and mutual funds of my choice instead of the limited option included in my employers 401k company.
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No, you cannot directly roll a 401(k) into a Roth. Set up a (conventional) rollover IRA. In 2010, a tax “window” will open to convert it to the Roth if you so choose.