Rollover from 401 to Roth

[Guest]

In the near future I will be leaving one job for a new position. I have a small amount in a 401K and would like to roll these funds into my Roth IRA account. Is this acceptable? I've seen quite a bit of discussion about rolling to a traditional IRA and converting from a traditional to a Roth but no mention of a direct rollover to a Roth. I understand I will have to pay taxes on the rolled amount and that another option may be to transfer this $ to my new employer's 401 plan but prefer the flexibility of a self directed Roth IRA.

[Michael Devault]

You can't make a direct rollover from a 401(k) to a Roth IRA. You have to roll it over into a traditional IRA. Then, if you meet the IRS' requirements for doing so, you can convert the traditional IRA to a Roth.

Hope this helps.