 Quote:
Originally Posted by kaneohe
from the Fairmark reference above:
For years before 2008, direct conversions from an employer plan to a Roth IRA were not permitted. You can do that now, but in some situations it may be preferable to roll to a traditional IRA and then convert to a Roth IRA.
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If the 401K has both pre-tax and after-tax funds it is also possible to do a two part rollover and roll the pre-tax funds (first) to a TIRA and then the after-tax funds to a ROTH. 401K plan must permit partial rollovers to do this. Many do.
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