Comments on: To roll over or not to roll over: Friday Q & A http://totalcandor.com/blog/2008/05/to-roll-over-or-not-to-roll-over-friday-q-a/ A Conversation About Income, Wealth, and the Steps in Between Sun, 22 Apr 2012 14:08:55 -0700 http://wordpress.org/?v=2.8.5 hourly 1 By: Michael http://totalcandor.com/blog/2008/05/to-roll-over-or-not-to-roll-over-friday-q-a/comment-page-1/#comment-6519 Michael Fri, 23 May 2008 16:37:36 +0000 http://totalcandor.com/blog/?p=191#comment-6519 Jeremy, At the time you rolled over your 401(k), you could only do so to a traditional IRA. Since the beginning of the year, however, you can convert a 401(k) account directly into a Roth IRA. Of course, you must pay taxes on the conversion, but it is no longer necessary to take the two distinct (first rollover to traditional, then convert to Roth) steps. Jeremy,
At the time you rolled over your 401(k), you could only do so to a traditional IRA. Since the beginning of the year, however, you can convert a 401(k) account directly into a Roth IRA. Of course, you must pay taxes on the conversion, but it is no longer necessary to take the two distinct (first rollover to traditional, then convert to Roth) steps.

]]> By: Jeremy http://totalcandor.com/blog/2008/05/to-roll-over-or-not-to-roll-over-friday-q-a/comment-page-1/#comment-6516 Jeremy Fri, 23 May 2008 14:53:46 +0000 http://totalcandor.com/blog/?p=191#comment-6516 Great advice. I rolled over a 401(k) from my old employer into a new IRA account several years ago. I already had a separate Roth IRA but was told you can only roll 401(k) funds into a traditional IRA, not a Roth. So now I have one of each. Also, I recently made a contribution to my Roth IRA. The financial advisor at my bank suggested that although I was investing a lump sum, I might want to use a portion of that total investment to purchase shares of my chosen fund every month. That way, I get the benefit of dollar cost averaging and don't have to worry about market timing. Great advice. I rolled over a 401(k) from my old employer into a new IRA account several years ago. I already had a separate Roth IRA but was told you can only roll 401(k) funds into a traditional IRA, not a Roth. So now I have one of each.

Also, I recently made a contribution to my Roth IRA. The financial advisor at my bank suggested that although I was investing a lump sum, I might want to use a portion of that total investment to purchase shares of my chosen fund every month. That way, I get the benefit of dollar cost averaging and don’t have to worry about market timing.

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