I am no CPA... do not handle IRAs.... I do know there is a difference between a ROTH and a traditional IRA. My question is .... can a participant roll assets out of a qualified plan into a ROTH? Advantages.. disadvantages?

Thanks!

[/QUOTE]can a participant roll assets out of a qualified plan into a ROTH? [QUOTE]

Nope, participant must roll assets from the QP to a traditional, and then convert the traditional to a ROTH.

Key advantages: Earnings are tax deferred and tax-free if distributions are qualified
Required minimum distributions are not required by owner (only by beneficiaries), allowing opportunity for continued tax-free earnings an all amounts in account

Possible disadvantage – taxes are due for the year the conversion occurs
Converted amount could put individual in higher tax bracket.

Advantages far outweigh disadvantages


Reminder: individual must meet the following requirements in order to convert the assets from a traditional IRA to a Roth IRA
MAGI for year of conversion must be no more than $100,000 ( limit is same for married filing jointly)
Individual’s tax filing status must not be married filing separately