Roth Rollover Conversion Question
Hi there, I have a 401(a) account through my previous employers retirement plan. I would like to rollover that 401(a) account over to a Roth IRA and pay the required taxes this year for the conversion. My question is: I am wondering if 401(a) to Roth conversions are subject to the $100,000 MAGI max income limit.
Thanks
Permalink Submitted by Alan Spross on Thu, 2008-10-09 21:10
Yes, they are. As for regular Roth conversions, the last year these limits apply is 2009.
Permalink Submitted by charles lore on Sat, 2008-10-11 00:54
Question foe Allan…. 2008 is the first yr you can convert directly from qrp to a roth. If his magi was
Permalink Submitted by Alan Spross on Sat, 2008-10-11 01:34
The distribution from the plan would likely not be permitted from a current employer unless employee has reached age 59.5, or the plan has another exception for non hardship in service distributions.
Either current or former, the plan must have adopted procedures for these direct Roth conversions, although it is also possible for an employee to request a distribution and then roll it over himself to a Roth IRA.
A plan may also offer regular Roth contributions as well as pre tax contributions. That would be a way to accumulate Roth assets in the plan without a distribution. And there are no income limits for these regular Roth contributions. The total limit of 15,500 (plus any catchup) would apply over both the Roth and pre tax salary deferrals.