403b into Roth IRA
I have a client who has a traditional IRA and a smaller 403b account. She is over 70 1/2 and we are discussing the viability of converting the 403b into a Roth IRA. Is it possible to convert the 403b to a Roth IRA and bypass the aggregation rules?
Permalink Submitted by Alan - IRA critic on Wed, 2014-11-26 21:53
Client must first complete the 403b RMD for 2014, then additional amounts can be rolled over either to a TIRA or a Roth IRA. Taxable income would be the sum of the amount of the RMD plus the Roth rollover, which may not be a problem if the 403b is small enough. Not quite sure what you meant about aggregation. Are there after tax amounts in the 403b?