Permalink Submitted by Alan Spross on Fri, 2008-08-01 03:02
A direct Roth conversion of the entire balance of a 401k will result in the pre tax amounts being taxable and the after tax amounts being tax free.
What needs further clarification from the IRS is whether you can convert only the after tax amounts to a Roth and simultaneously transfer the pre tax amounts to a TIRA. The plan would have to offer two transfers in order to accomplish that and your MAGI would have to be under 100,000 to do the Roth conversion piece prior to 2010.
Permalink Submitted by Alan Spross on Fri, 2008-08-01 03:02
A direct Roth conversion of the entire balance of a 401k will result in the pre tax amounts being taxable and the after tax amounts being tax free.
What needs further clarification from the IRS is whether you can convert only the after tax amounts to a Roth and simultaneously transfer the pre tax amounts to a TIRA. The plan would have to offer two transfers in order to accomplish that and your MAGI would have to be under 100,000 to do the Roth conversion piece prior to 2010.