Conversion to Roth IRA

[Guest metallic]

A doctor has a retirement plan and would like to convert some of his assets to a Roth IRA. He is in his 30s and looking for ways to have some retirement income that is tax-free down the road. If his plan is amended to allow an in-service distribution of his vested profit sharing account (say an age 35 requirement and the contributions need to be in the plan for at least 2 years), can he take those assets and convert them to a Roth IRA? Administratively, this sounds burdensome so I would like to discourage it. Are their AGI limits that could restrict this?

[austin3515]

35 would probably be OK, but you only need age 35 (but I wouldn't go much lower--if Congress wanted a minimum age, they would have included one).

The in-service rules say you can take an in-service after a) 2 years accumulation, b) 5 years participation, or c) after a stated age. You do not need to meet more than one of those exceptions.

And in 2010 and forward there are no AGI restrictions.

[Guest metallic]

35 would probably be OK, but you only need age 35 (but I wouldn't go much lower--if Congress wanted a minimum age, they would have included one).

The in-service rules say you can take an in-service after a) 2 years accumulation, b) 5 years participation, or c) after a stated age. You do not need to meet more than one of those exceptions.

And in 2010 and forward there are no AGI restrictions.

Thanks.

[GMK]

And in 2010 and forward there are no AGI restrictions.

... unless (and until it changes) you are a resident of Wisconsin. (Sorry to be a broken record.)