Rollover of Deferred Comp to Roth IRA?
I will be receiving a large lump sum payout of Deferred Comp when I separate from service. The company says it is not eligible to roll to a TIRA as it is not a qualified plan but they indicated it could be rolled to a Roth as they will report it all taxable in one year. Is this the case and do I have 60 days to put in the Roth of my choosing?
Permalink Submitted by Alan - IRA critic on Tue, 2015-04-14 16:51
If it cannot be rolled to a TIRA, then it cannot be rolled to a Roth IRA either. I assume this is a non govt 457 plan. Did they actually put this in writing? You can use the proceeds to subsidize a regular IRA or Roth contribution from your earned income subject to the contribution limits, but a regular contribution is far different than a rollover contribution.