Need help rolling retirement funds to roth

[Guest Peter Truong]

My wife, age 32, has $11,600 in retirement fund and $7,600 in 457 deferred comp plan with previous employer who's asking her to rollover. She is now homemaker and has no plan to rejoin workforce. Please help with advise on what to do with all moneys. Very interested in Roth IRA, but don't know where/how to start. ALso, any recomendations on best institution with which to start Roth IRA?

Thank you.

[This message has been edited by Peter Truong (edited 02-16-2000).]

[Michael Devault]

If the $11,600 is in a pension plan, it can be rolled into a traditional IRA. Then, it can be converted to a Roth IRA, if you meet the IRS' criteria for doing so.

However, under current law, the money in the 457 plan can't be rolled to an IRA; it can be rolled only to another 457 plan, which is not a likely option in your situation. It's probable that the law will change in the near future, allowing rollovers of 457 money, but it can't be done currently.

I suggest that you discuss your situation with your accountant, stock broker, financial planner or insurance agent. They should be qualified to guide you thru the process. But, it you want to "go it alone," you might try some of the mutual fund web sites for info.

Hope this if of some benefit to you. Good luck!

[Guest Peter Truong]

Noted, can't rollover 457. Q1: What can we do with money, cash out?

As for $11,600 pension, wish to roll over to ira, then convert maximum amount to roth and possible educational ira. Q2: Must new ira and eventual roth ira be under wife's name, or can be under my name or joint, though it's her pension?

Q3: Have you recommendations on good mutual funds web site?

Hope questions aren't silly. Thanks for info.

Peter