Permalink Submitted by mk foss on Wed, 2009-08-12 20:56
There is mandatory withholding when amounts come out of a qualified plan and are not directly rolled over. Withholding from IRAs is voluntary.
If you’re converting to Roth from an IRA – you definitely wouldn’t want any withholding if you’re close to the 100k. If you’re converting from a qualified plan, you can eliminate the withholding by first rolling to an IRA. Or you could ask Fidelity if they can treat the conversion from the qualified plan to a Roth as a rollover instead of a distribution.
Permalink Submitted by mk foss on Wed, 2009-08-12 20:56
There is mandatory withholding when amounts come out of a qualified plan and are not directly rolled over. Withholding from IRAs is voluntary.
If you’re converting to Roth from an IRA – you definitely wouldn’t want any withholding if you’re close to the 100k. If you’re converting from a qualified plan, you can eliminate the withholding by first rolling to an IRA. Or you could ask Fidelity if they can treat the conversion from the qualified plan to a Roth as a rollover instead of a distribution.
Permalink Submitted by Carolyn Pearson on Thu, 2009-08-13 14:37
mgtf4cpa , have a good day and
Thank you