Self Employed: 401k to Roth conversion?
Love all the information here – thank you from one who has learned a LOT!
My question – I am self employed and have a 401k at Schwab to which I contribute. I also have a ROTH IRA as well. I would like to move some of the money in the 401k to the ROTH. I am planning ahead for 2010 – how would I do this?
Thanks,
CJ
Permalink Submitted by mk foss on Mon, 2009-06-01 00:31
This should be a relatively easy transaction. First, you need to determine if the 401k allows in service distributions. If it does, you should request a distribution and ask that it be transferred to a new or existing Roth IRA rather than a traditional IRA.
Now that Roth conversions can be made from qualified plans as well as IRAs, the Schwab standard distribution form probably allows for these transactions.
If your 401k plan does not allow for in service distributions, contact Schwab to see how to amend it to allow your conversion.