457 to Roth IRA?
When retiring, i have the option to put 35K in a 457 deferred compensation
plan. After doing so, I want to then roll that entire amount into a Roth IRA.
Do federal laws permit that to be done as a direct transfer of those funds
from the 457 to the Roth IRA OR must the funds from the 457 be first
rolled into an IRA before then being rolled into a Roth IRA?
My wife may also want to roll her 403b funds into a Roth IRA for her……
Permalink Submitted by Alan - IRA critic on Mon, 2014-06-23 17:22
Yes, if this is a govt 457 a rollover directly to a Roth IRA can be done. However, it might be better to roll the entire balance to a TIRA first so you can convert increments instead of larger amounts in a single year which would increase the tax rate paid. Same for spouse.
Permalink Submitted by Randy Aleman on Mon, 2014-06-23 23:18
TIRA = “Traditional IRA” ???