401K to Roth-IRA
My goal is to move post-tax contributions from my professional corporation’s profit sharing plan to a Roth-Ira without incurring any tax liability. My strategy is as follows: (1) Rollover the entire plan balance into a new Traditional IRA, (2) Roll just the pre-tax IRA amount back into the plan, (3) Convert the amount left in the IRA (basis)to a new Roth-IRA. I am 69 years old, and my plan allows incoming IRA rollovers and in service plan distributions. Would this work? Also, I presently have a single traditional IRA account (no basis). Would after step #2 above be the correct time to roll that IRA into the plan? Thank You.
Permalink Submitted by Alan - IRA critic on Tue, 2013-04-30 16:03