Archive for January, 2008
Ira Rollover Grace Period
January 9th, 2008
Question: Can I Rollover my “Standard” 401k into the new “Roth” 401k, WITHOUT penalty?
I have a fairly nice 401k for a 30 something. I’m contributing the max IRS allowed. It’s grown nicely. Yadda yadda yadda.
But I’ll have to pay taxes on it when I retire. Considering our countries desire to tax first, ask questions later, I’d prefer to avoid this.
Much like the “grace period” when the Roth IRA came out, will the new Roth 401k allow “free” rollover? Will I be able to avoid tax or the 10% penalties usually associated with these types of transactions?
Answer: my employer gave us the opportunity to switch to Roth if we wanted to, no penalties. they actually recommended us to if we were at a certain age. you might want to ask your HR if they can help
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