On Fri, 13 Jan 2006 15:01:04 -0600, cporro <cporro[at]gmail.com> wrote:
- quote -

Anything within 401k or traditional IRA has no capital gains tax, but will
eventually be taxed at your tax rate when distributed (withdrawn hopefully
during retirement). With a Roth IRA, tax would be paid at time of
contribution (or conversion), but no tax at all on future gains.

hey thanks. i've been doing some reading since my post and everything
you said is correct to the best of my knowledge. the thing that kills
me is that AGI of 100. seems that is the number for single or married.
i'm married and we aren't going to make it... oh well. guess it will
stay in the rollover IRA. anyway, much better then the fedelity mutual
funds my former company offered.

on another note, since etrade does not offer these same funds it seems
i'll have to sell my mutual funds and then probably buy the ol'
vangurad s&p 500 index. since this is a rollover IRA it seems i
wouldn't get hit with capital gains. do you know?

much thanks

On Tue, 10 Jan 2006 04:02:38 -0600, cporro <cporro[at]gmail.com> wrote:
- quote -

You cannot directly roll a 401k into a Roth IRA. But you can roll the
401k into a traditional or rollover IRA and then convert those funds to a
Roth IRA (I think as long as your AGI is not more than $100k).

Note that there is manditory 20% withholding if the 401k check is made out
to you. There is no withholding if you arrange direct trustee to trustee
transfer to an IRA.

Also note that you pay income tax on any money you convert from IRA to
Roth IRA. I am doing that gradually between IRA and Roth IRA accounts at
Fidelity and adjusted my W-4 form to cover the withholding.

See http://www.irs.gov/ for details.

if i made too much to contribute to my roth IRA this year can i still
rollover my old employers 401k into it?

much thanks.