Permalink Submitted by Jose Morales on Thu, 2012-01-26 16:36
I’m sure not too many people besides Mr. Romney and his financial advisors know the answer to that question. My best guess is there was at least one very large direct rollover from a qualified retirement plan such as a 401K, profit sharing, or pension plan.
Permalink Submitted by Barbara Ohlinger on Thu, 2012-01-26 17:52
If there was a large rollover?
1. would there have had to be taxes paid as in a contribution or something similar to a regular IRA being transfered to a Roth IRA
2.could it have been a non taxed transfer from some other retirement fund?
Permalink Submitted by Jose Morales on Thu, 2012-01-26 18:36
A rollover would not result in any tax liability, unless it was a rollover to a Roth IRA. Transfers only occur from IRA to IRA, not from qualified plans to IRAs or from IRAs to qualified plans.
Permalink Submitted by Barbara Ohlinger on Thu, 2012-01-26 18:54
So if I have a 401K with 500K I can not transfer it into a Roth IRA? Can a person set up their own retirement plan fund this plan and then put the funds into a Roth IRA?
Permalink Submitted by Alan Spross on Thu, 2012-01-26 19:01
I believe the bulk of the IRA balance came from a direct rollover from Bain Capital.
Yes, you can rollover 401k assets to a Roth IRA or you can roll them to a TIRA and then convert from the TIRA to a Roth IRA. Many plans also allow you to roll pre tax amounts to a designated Roth account within the 401k plan. These are known as “in plan Roth Rollovers” (IRRs). Of course, any movement of pre tax retirement plan assets to a Roth account is taxable.
Permalink Submitted by Jose Morales on Thu, 2012-01-26 19:07
[quote=”[email protected]“]So if I have a 401K with 500K I can not transfer it into a Roth IRA? Can a person set up their own retirement plan fund this plan and then put the funds into a Roth IRA?[/quote]
The terms “Rollover” “Transfer” and “Direct Rollover” have very different meanings and cannot be used interchangeably.
Permalink Submitted by Alan Spross on Thu, 2012-01-26 23:29
Somewhat surprising that he has not converted any of this to a Roth IRA since 2010, despite the fact that 35% plus state is much higher than what he has been paying.
Permalink Submitted by Richard Rea on Fri, 2012-01-27 05:05
Most company 401k plans have things like ‘index funds’ (SnP500, Russell 2000, etc) that in my opinion are “dull knifes” that are some what useless in a Bear Market for building retirement wealth. For example the SnP 500 is more or less at the same level now that it was in 2000 more or less, ie no gain in 12 years. And now the idiots running the Fed has a ZERO INTEREST RATE POLICY that probably has the fixed income options in your 401k yielding next to nothing.
Obiously the management running Bain Capital’s 401k put a bazzoka in their fund, more power to them!
IMO the bear market that started in 2000 should be over in about 2023 so we are about half way thru it. Good luck building wealth with those dull knifes.
Permalink Submitted by Barbara Ohlinger on Mon, 2012-02-06 13:33
What are the purose of offshore investments and how is this use disqualified with US investments? Also how does one use options in their Roth IRA to somehow get great big gains?
Permalink Submitted by Jose Morales on Thu, 2012-01-26 16:36
I’m sure not too many people besides Mr. Romney and his financial advisors know the answer to that question. My best guess is there was at least one very large direct rollover from a qualified retirement plan such as a 401K, profit sharing, or pension plan.
Permalink Submitted by Barbara Ohlinger on Thu, 2012-01-26 17:52
If there was a large rollover?
1. would there have had to be taxes paid as in a contribution or something similar to a regular IRA being transfered to a Roth IRA
2.could it have been a non taxed transfer from some other retirement fund?
Permalink Submitted by Jose Morales on Thu, 2012-01-26 18:36
A rollover would not result in any tax liability, unless it was a rollover to a Roth IRA. Transfers only occur from IRA to IRA, not from qualified plans to IRAs or from IRAs to qualified plans.
Permalink Submitted by Barbara Ohlinger on Thu, 2012-01-26 18:54
So if I have a 401K with 500K I can not transfer it into a Roth IRA? Can a person set up their own retirement plan fund this plan and then put the funds into a Roth IRA?
Permalink Submitted by Alan Spross on Thu, 2012-01-26 19:01
I believe the bulk of the IRA balance came from a direct rollover from Bain Capital.
Yes, you can rollover 401k assets to a Roth IRA or you can roll them to a TIRA and then convert from the TIRA to a Roth IRA. Many plans also allow you to roll pre tax amounts to a designated Roth account within the 401k plan. These are known as “in plan Roth Rollovers” (IRRs). Of course, any movement of pre tax retirement plan assets to a Roth account is taxable.
Permalink Submitted by Jose Morales on Thu, 2012-01-26 19:07
[quote=”[email protected]“]So if I have a 401K with 500K I can not transfer it into a Roth IRA? Can a person set up their own retirement plan fund this plan and then put the funds into a Roth IRA?[/quote]
The terms “Rollover” “Transfer” and “Direct Rollover” have very different meanings and cannot be used interchangeably.
Permalink Submitted by Bruce Steiner on Thu, 2012-01-26 23:17
Either his IRA or his profit-sharing or 401(k) account invested in some of Bain Capital’s deals, which were very successful.
Permalink Submitted by Alan Spross on Thu, 2012-01-26 23:29
Somewhat surprising that he has not converted any of this to a Roth IRA since 2010, despite the fact that 35% plus state is much higher than what he has been paying.
Permalink Submitted by Bruce Steiner on Thu, 2012-01-26 23:32
Perhaps he’s planning to leave his IRA to charity (or to his wife, who would then leave it to charity).
Permalink Submitted by Richard Rea on Fri, 2012-01-27 05:05
Most company 401k plans have things like ‘index funds’ (SnP500, Russell 2000, etc) that in my opinion are “dull knifes” that are some what useless in a Bear Market for building retirement wealth. For example the SnP 500 is more or less at the same level now that it was in 2000 more or less, ie no gain in 12 years. And now the idiots running the Fed has a ZERO INTEREST RATE POLICY that probably has the fixed income options in your 401k yielding next to nothing.
Obiously the management running Bain Capital’s 401k put a bazzoka in their fund, more power to them!
IMO the bear market that started in 2000 should be over in about 2023 so we are about half way thru it. Good luck building wealth with those dull knifes.
Permalink Submitted by Barbara Ohlinger on Mon, 2012-01-30 18:49
This is where a Roth IRA would really benefit tax wise vs regular IRA.
Permalink Submitted by Bruce Steiner on Mon, 2012-01-30 18:57
Unless he’s planning to leave his IRA to charity, in which case he wouldn’t convert to a Roth.
Permalink Submitted by Barbara Ohlinger on Mon, 2012-02-06 13:33
What are the purose of offshore investments and how is this use disqualified with US investments? Also how does one use options in their Roth IRA to somehow get great big gains?