Rollover/conversion to Roth 401K?

[Guest tschotland]

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]

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.

[Guest tschotland]

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]

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.