Convert 401k to Roth 401k?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
ronin
Posts: 41
Joined: Wed Apr 22, 2009 9:17 pm

Convert 401k to Roth 401k?

Post by ronin » Thu Apr 29, 2010 9:19 pm

I thought I had read somewhere that it is now possible to convert all or part of an existing 401k balance to a Roth 401k at the same employer. Of course, it would be a taxable event, but I'm wondering if this is even possible?

I ask because, in general, my employer does not allow for withdrawals from the plan unless I'm no longer an employee. My desire to stay with this employer ends up precluding me from rolling 401k dollars to a traditional IRA and then converting to a Roth IRA.

Anyone have any thoughts on this?

Thanks!

kd2008
Posts: 562
Joined: Sun Feb 15, 2009 6:19 pm

Post by kd2008 » Fri Apr 30, 2010 9:33 am

No, you cannot convert trad 401k dollars into roth 401k dollars.

ensign_lee
Posts: 253
Joined: Fri Mar 12, 2010 10:03 am

Post by ensign_lee » Fri Apr 30, 2010 9:56 am

Sorry, what you probably read was a traditional IRA to a roth IRA. Unless you leave this employer and convert to an IRA, this avenue of "convert from traditional to Roth" won't work for you.

Default User BR
Posts: 7501
Joined: Mon Dec 17, 2007 7:32 pm

Re: Convert 401k to Roth 401k?

Post by Default User BR » Fri Apr 30, 2010 10:58 am

ronin wrote: My desire to stay with this employer ends up precluding me from rolling 401k dollars to a traditional IRA and then converting to a Roth IRA.
Are you sure that's even a good thing to do? You haven't given any information about your tax situation.



Brian

ronin
Posts: 41
Joined: Wed Apr 22, 2009 9:17 pm

Post by ronin » Sat May 01, 2010 10:18 am

Thanks for your feedback!

Post Reply