Quote:
Originally Posted by MTG#10
Are there any taxes/fees/penalties for rolling over a 401k into a Roth IRA?
The company I work for is being bought out by a much larger company. They said we cant contribute to 401k until we've been with the new company for a year. They gave us an option of rolling our existing 401k's to a new Roth IRA that they will set up, then once we're eligible can roll that money back over to their 401k program. But I just opened my own Roth recently so I figured I might as well dump it into that one.
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I did a little poking around, and it looks like I might have been wrong about the basis thing (I know it was the case at one point, but I'm getting to be an old man, so it may have been awhile ago)
There isn't a ton out there, but the sites I could find that would commit to talking about it, called it a "Roth Conversion". Under a Roth Conversion you're taking your old account and changing its designation to a Roth.
It's possible there are roll options out there that don't do a "conversion" on your current contributions/gain. I'm guessing if it's possible it's complicated and commission chasing ****leheads don't want to do it. It's also possible it's not an option anymore.
If your company is offering to set up a ROTH you roll to, you should be able to ask the plan administrator in HR what the tax implications are of rolling your traditional 401K to a ROTH IRA. If they're doing the administration, they should be able to get you an answer.
Hope it helps.