Employee Stock Purchase Plan to ROTH IRA?
In the spirit of trying to get as much $ growing tax free as possible, is it possible to convert an ESPP to a ROTH? (We make over the adjusted gross allowed to be able to make ROTH contributions.) The company allows us to do anything with the stock (it is post tax) but doesn’t have a ROTH plan so we’d have to move it out to do a conversion, if this is even an option. Any knowledge of the rules is greatly appreciated! Thanks.
Permalink Submitted by mk foss on Mon, 2012-08-20 21:54
An ESOP can be converted to a Roth because it is a qualified retirement plan. An ESPP is not a retirement plan and cannot be converted to a Roth or rolled over to an IRA or any other type of retirement plan.
Permalink Submitted by Rachael West on Mon, 2012-08-20 21:56
THANK YOU so kindly for taking the time to answer this question!!!