401k Roth Profit Sharing Plan
we have a self directed 401k Profit Sharing Plan Roth account with in our a self directed 401k Profit Sharing Plan. we did a conversion of real property to a Roth IRA and thought it was the same as a 401k Roth. Can we move (transfer/rollover or some other term) into our 401k Roth?
Permalink Submitted by Alan Spross on Sat, 2012-05-05 01:09
Once assets are in a Roth IRA, they cannot be transferred into any other retirement plan other than another Roth IRA.
The rules for a Roth 401k and a Roth IRA are similar, in fact the Roth IRA tax rules are somewhat more favorable than a Roth 401k. Why do you want to move the property out of the Roth IRA?
What type of account held the property before it was converted to a Roth IRA?
Permalink Submitted by Rose Robins on Tue, 2012-05-08 16:19
Want to move out of the Roth IRA so that any repairs to be made to the property can be done more quickly. The is real property that is owned and it is a nightmare when emergenices come up. The repair person wants their money right then not when the company that holds the assets gets around to paying the bill.
The property was held in the 401k Profit Sharing Plan.
Permalink Submitted by Alan Spross on Tue, 2012-05-08 18:51
Since repair and any other bills such as insurance premiums must be paid from the plan that holds the property, the only other option is to distribute the property from the Roth IRA in a taxable distribution and then you can pay the bills from other sources. The distribution may be partly taxable depending on the amount of gain in owned Roth IRA accounts.
If the Roth custodian is one of the large self directed custodians such as Guidant or Pensco, they might be able to advise how best to handle these expense payments, since it is a problem all people have that hold rental real estate in IRA accounts.