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Posted by Rich Carreiro on April 23, 2008, 10:37 am
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> The issues are the same? My understanding is that if I roll it to a
> TIRA: not a taxable event; if I roll to a RIRA: taxable event. Or are
> you saying that they have to issue the same two forms, regardless
> (albeit the forms would be filled out differently)?
There are two potential options:
(1) Roll/convert directly from the 401(k) to the RIRA.
(2) Roll to TIRA, then convert to RIRA.
However, it's a difference which makes (virtually) no
difference. In both cases, the money can only go
to the RIRA if your modified AGI is low enough. In both
cases, the money ultimately going into the RIRA will be taxable.
The only thing option (1) gets you is slightly less paperwork.
That's why a plan preventing you from doing (1) is nothing to get
worked up about.
--
Rich Carreiro rlc-news@rlcarr.com
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