- quote -

Sorry, I did mioss then fact that he was talking about a plan at a previous
employer. So there is no restrction on the withdrawls. The only restriction in
the law is the AGI rule and as you point out, based on the info he presented,
he has no problem at this time.

So the only problem that he needs to resolve is one that only he can make a
decision about. and that ios whether or not he can afford the taxes involved.

paulmaf[at]aol.com (PaulMaf) writes:
- quote -


- quote -

He should be fine with respect to the 100k in the previous
employers plan.



--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting

- quote -


Why?

Well if your 401K plan does not allow unrestricted withdrawals while you remain
employed by that employer, you cannot do it.

Some plans do allow unrestricted withdrawal, but most don't. So you have to
chek with your plan adminstrator.

In any case, as pointed out by the other responder, you must first role the
money into a regular IRA and from there roll it into the Roth.

But that is accomplished in an almost seamless matter so that is not a big
problem as long as you properly inform the IRA custodian what you are doing.

The more important considerationn is the taxes you will have to pay on the
amount rolled into the Roth.

"pacman" <pacman2081[at]yahoo.com> wrote in message
news:7e57dd12.0409231940.30516d95[at]posting.google.com...
- quote -

It might be a good idea, but you can't roll it directly into a Roth IRA.
You have to roll it over into a regular IRA and then convert it to a Roth.
I think you have to pay taxes on all or part of it since you've already
received the tax benefit from when the contributions reduced your taxable
income. A few years ago when Roths were first introduced, they allowed you
to spread the additional income over 4 or 5 years but that's not possible
any more so you might want to put it into the regular IRA and then transfer
a portion each year to the Roth so that you don't increase your taxable
income by so much that you'd have to pay a lot of taxes in addition to
whatever's withheld.

Leigh

I am married, no kids, no mortgage in my early 30's. I have close to
$100k in my 401k plan one of my previous employers. I expect to make
$50k in AGI for the next couple of years. After that I expect my wife
to start working. I expect our AGI to hit $150k. Is it a good idea to
rollover money from my 401k to a Roth IRA. I have more money in my
retirement accounts than assets outside my retirement account.

thanks
-- pacman