huskerchen wrote:

- quote -

As a business owner you can open the individual 401(k) and transfer to
it. But be careful about what you try to invest in. Even if the 401(k)
rules allow real estate (I know IRA laws allow it, not sure about
401(k)), you certainly can't put your house into it, or any rental
property you already own. This is called 'self-dealing' which is
prohibited, and if done, even inadvertently, can break an IRA or 401(k).
It would then be deemed to be distributed, and tax and penalty become
due. Nasty stuff.

JOE

On May 20, 3:33 am, PeterL <po.n...[at]gmail.com> wrote:
- quote -

Thank you guys for the reponse. I just found out about another option
individual 401k or Solo 401k. From what I read, I can use the fund in
individual 401k to invest in real estate. I have a side business that
is making about $10k a year, and I plan to turn my current house into
investment property in a couple of years, should I rollover my 401k
into an individual 401k?

Thanks!


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On May 19, 1:24 pm, huskerchen <huskerc...[at]hotmail.com> wrote:
- quote -


You can't roll your 401K into a Roth IRA, not directly anyway. You
need to first roll it into a rollover IRA. So I would do that first
since there is no tax consequences. Then you can think about rolling
it into a Roth.

huskerchen wrote:

- quote -

Your former employer might require you to take it out all at once. In
this case roll it to traditional IRA, then you can convert some of it to
Roth over multiple years. If you do this so as to remain out a higher
tax bracket in any given year, then it will help minimize tax, otherwise no.

What you have it invested in while waiting could have a bigger impact,
especially if you incur large tax-deferred gains prior to conversion.

- quote -

No. The modified AGI limit is calculated without including the amount of
the conversion. See IRS Pub 590.

- quote -

Current taxes are just part of the issue. Are you sure that converting
to Roth makes sense in the first place? As discussed in this group
before, the main factor is, will you be in a higher tax bracket during
the distribution phase than you are now during the contribution phase
(or, will tax laws change significantly in the interim)? The moderate
approach is to have some retirement money in both pre and post tax
accounts. Remember, you could also take the money that you propose to
use to pay tax on the conversion and invest it directly in, say,
something that has different tax advantages, such as long-term capital
gains income.

-Mark Bole

I am planning to leave my current job and join another company. I have
about $30k in my 401k and I would like to rollover to Roth IRA. I
estimiate my salary this year will be close to or a little more than
$95k. My questions are:

1) Is it true that I can rollover my 401k during multiple years to
minimize the tax
2) I heard that when I rollover 401k, I need to make sure the amount
will not bump me out of the Roth IRA eligible limit, that means if I
rollover the full amount $30k, and if my salary is $95k, I will lose
my eligibility for Roth IRA, is this correct?
3) In the next couple of years my estimated salary will be around
$100k, how should I plan for the rollover?

Thanks!
Yi