Guest tschotland Posted July 24, 2008 Posted July 24, 2008 Hello, Is there a way to rollover or otherwise transfer Roth IRA money into a Roth 401K? Is there a way to convert profit-sharing plan money to Roth 401K money? My goal is to have as much flexibility in the use of my Roth money as I do with my plan money. I have complete checkbook control of my profit-sharing plan (which has a Roth 401K provision as well), but not of my Roth IRA. Currently I convert profit-sharing plan money to Roth IRA money in years when my income is low, but I dislike the loss of flexibility. Thanks, Tom
masteff Posted July 25, 2008 Posted July 25, 2008 Is there a way to rollover or otherwise transfer Roth IRA money into a Roth 401K? See IRS Pub 590, page 65, Rollover From a Roth IRA. http://www.irs.gov/pub/irs-pdf/p590.pdf Is there a way to convert profit-sharing plan money to Roth 401K money? No. Conversion of an IRA is permitted by specific provision of the code and there is no provision for it to occur w/ a Roth account in a PS plan. Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
Guest tschotland Posted July 25, 2008 Posted July 25, 2008 Thanks. I'm just curious - does anyone have a clue why they have made it so hard to move Roth money around compared to pre-tax retirement dollars? Tom
masteff Posted July 25, 2008 Posted July 25, 2008 why they have made it so hard to move Roth money around You've got it backwards. It's that they've made it easier over the last decade to move non-Roth money around. In the past it was much more restrictive to move all types of monies. Since the Roth-type feature was only added to 401(k)'s in the last several years, the need for better Roth portability is a new thing. And given the slow adoption of the Roth feature into existing plans, it will be some time before legislation is likely to address Roth portability. Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
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