Just kinda thinking out loud here. I have called the instatutions involved, and due to multiple answers, most not helpful I am here to ask what you alk think. So, I have a 457b with empower. I want to start rolling over money to a roth IRA, like 22k a year for 10 years. I want to pay the taxes on this with more money from the 457b. So, 7 k withdrawn to pay the taxes on the 22 k and the addtional 7k. Now, empower said they cant do this. Plus, they really dont know much when I call and ask about things. Like basic stuff. So with that said, I want to transfer 220 k to a fidelity ira. Then roll over the 22 k to the Roth. Now the fedility advisor said, I could roll over the money and then pay the taxes on it. Showed me how on the screen. When I got home the question became, I am 50, how can they pay the taxes from the IRA rollover, if I am not able to withdraw money without penalty? So, new idea is to transfer 180k to the fedility IRA, then transfer 22 k to the roth every year in January. At tax time the next year pay the taxes for the rollover from the empower account? Or do the taxes need to be paid immediately upon a rollover?
So questions are, is the fedility adviosor correct that the taxes can be taken out of a rollover from an IRA if I am 50, and if they immediately take taxes out of a rollover or can I wait to pay them when taxes are due. I can not get a clear answer from any of them. It will work, I just need to find the corect way to do it.
So questions are, is the fedility adviosor correct that the taxes can be taken out of a rollover from an IRA if I am 50, and if they immediately take taxes out of a rollover or can I wait to pay them when taxes are due. I can not get a clear answer from any of them. It will work, I just need to find the corect way to do it.