Roth IRA Rollover from 401k
Whenever you leave your job, you have a decision to make with your 401k plan. Typically, most people will initiate a 401k rollover to a traditional IRA. A common question that I’ve been getting lately is if you can roll over your 401k into a Roth IRA and how you do it. Or if you have been contributing to a Roth 401k…..then what are your choices? Let’s see if I can help you make “cents” of the situation.
If you like this article you may also like: 401k Rollover Options to IRA, 7 Common Mistakes When Rolling Over Your 401k, 401k Rollover Offers Wide Range of Benefits.
Roth IRA Rollover Rules From 401k
Reminder: You must be separated from your employer to roll your 401k into a Roth IRA. You CANNOT do this if you are still working for the same company and/or employer (unless your over 59 1/2).
Prior to January 1, 2008 you were simply not able to directly rollover your 401k into a Roth IRA. If you wanted to do so you had to complete a two-step process. (Keep in mind that this would also apply to old Simple IRA’s, SEP IRA’s and 403b’s, 457, and qualified pensions, too)
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