07-20-2006, 03:33 PM | #1 |
Demiurge
Join Date: Aug 2005
Posts: 36,368
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rollover conversion Roth
My financial advisor tells me that I should roll over my 401k and my 403b as well as my SEP into a conversion Roth IRA this year. He says this is permissible as long as you make less than 100k/yr. He says that this would be by far the best thing (despite the tax penalty of converting it to Roth).
What do you guys think? |
07-22-2006, 04:43 PM | #2 | |
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Just my two cents. |
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07-22-2006, 06:39 PM | #3 | |
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Join Date: Jan 2006
Location: Moscow, ID
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I would go with the advice of an advisor vs. the guys on CG. The benefits or drawbacks are very situation specific.
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07-22-2006, 06:43 PM | #4 | |
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I would roll all of that money into a C3PO. |
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07-22-2006, 07:26 PM | #5 |
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If you're not at a high tax bracket it is fine. The reason is the Roth will then continue to grow tax free so when you retire, you can pull those funds out at any time, tax free on any growth.
also, if you need ot pull funds out for whatever reason, you can pull principle out of a roth at any time without penalty. with a rollover IRA you'll be taxed for any withdrawl on principle and growth, plus if you withdrawl before 59.5 years, you'll pay 10% early withdrawl penalty.
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