Rollover IRA just like Traditional?

[frujinator]

I know the difference is that you transfer your assets from your employers plan for you, but does it work like a Traditional after transferred?

Is their anyway to transfer Rollover or convert it into a ROTH IRA?

 

[Lusitan]

I believe the only difference between a "Rollover IRA" and a Traditional IRA is that you can roll your Rollover IRA funds back into another 401(k) plan at some time in the future should you so choose.

Other than that, I think that "Rollover" and non-Rollover Traditional IRAs are subject to the same rules for converting to a Roth. I haven't done that process but I'm sure others will post who have ...

 

[frujinator]

Would you recommend to convert them to a ROTH IRA

 

[Martha]

Yeah, you can convert your rollover IRA to a Roth if you meet the income requirements for conversion. See IRS publication 590: http://www.irs.gov/publications/p590/index.html

As to whether you should, it depends on you own situation (how old you are, your income, etc).

 

[nun]

Would you recommend to convert them to a ROTH IRA

If your AGI is under $100k you can do the conversion. I'd do it if you pay the tax due on conversion from after tax $$$ and are in a low tax bracket. Most mutual fund companies have a ROTH conversion calculator to see it its worth your while, TIAA-CREFs is at.

https://www3.tiaa-cref.org/iracalcs/conversion_calc.jsp