summer2007
Recycles dryer sheets
- Joined
- Jul 14, 2007
- Messages
- 346
I'm trying to help my Dad out with this one. He has a traditional 401k and wants to roll it over to a Roth IRA when he retires. He will probably be 68-1/2 when he retires.
So if he dose not roll it all over by the time he is 70-1/2 he will have to take the RMD each year the way I understand it (I know they changed it for 2009 but I figured they would go back to the usual way after that).
It would benefit him to roll his 401k over to a Roth IRA over many years if possible so that he doesn't get jacked up into higher tax brackets.
My question is if he is 70-1/2 and still has not yet rolled over every bit of his 401k to a Roth IRA and is forced to take RMD can he pay the taxes on the RMD and roll that over to a Roth IRA or is he forced to take the RMD out of his 401k and can not roll it over to a Roth at that point?
Because it would benefit him to spread the Rollover to a Roth over many years if possible.
Jim
So if he dose not roll it all over by the time he is 70-1/2 he will have to take the RMD each year the way I understand it (I know they changed it for 2009 but I figured they would go back to the usual way after that).
It would benefit him to roll his 401k over to a Roth IRA over many years if possible so that he doesn't get jacked up into higher tax brackets.
My question is if he is 70-1/2 and still has not yet rolled over every bit of his 401k to a Roth IRA and is forced to take RMD can he pay the taxes on the RMD and roll that over to a Roth IRA or is he forced to take the RMD out of his 401k and can not roll it over to a Roth at that point?
Because it would benefit him to spread the Rollover to a Roth over many years if possible.
Jim