Rollover of Roth 401k into Roth IRA

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Subject Author Date Rollover of Roth 401k into Roth IRA Dilip V. Sarwate 02-11-2008
Posted by Dilip V. Sarwate on February 11, 2008, 2:17 pm Please log in for more thread options IRS Publication 590 (for 2007 tax returns) says that starting January 1, 2008, money in a 401k plan can be rolled over directly into a Roth IRA but only by those whose MAGI is below certain limits (as described in the Publication for rolling over Traditional IRAs into Roth IRAs). The text makes no mention (that I could find) of rollovers of Roth 401k money into a Roth IRA, and so it is unclear to me if MAGI limits also apply to those wanting to roll over Roth 401k money into a Roth IRA. If MAGI limits *do* apply, is the only choice to wait for Tax Year 2010 when MAGI limitations are supposed to disappear (the 401k trustee will not be happy because the rollover is being sought due to separation from service with the employer), or can the Roth 401k money be rolled over into a Traditional IRA during 2008 with an increase in IRA basis equal to the post-tax contribution into the Roth 401k account? Dilip Sarwate -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Direct Rollover 401(k) to Roth January 2, 2008, 1:28 am Can I Rollover ESOP to Roth IRA? April 20, 2008, 2:00 pm How are 457 to Roth IRA rollover taxes handled? February 6, 2008, 1:01 pm Under age Rollover to Roth IRA, how do I show that on the 1040 form March 2, 2009, 1:03 am Roth 401K vs. "Regular" 401K? January 1, 2008, 9:13 pm Roth 401k - Income Tax Return Reporting May 7, 2007, 1:29 pm Roth 401k contribution reported on Form 5498 April 12, 2008, 2:27 pm Re: Are Employer Plans REQUIRED to perform 401k to Roth IRA Distribution if Requested? April 21, 2008, 9:46 pm Re: Are Employer Plans REQUIRED to perform 401k to Roth IRA Distribution if Requested? April 23, 2008, 10:37 am Re: Are Employer Plans REQUIRED to perform 401k to Roth IRA Distribution if Requested? May 2, 2008, 10:53 pm