We're talking about the neighborhood of $30,000. If I can avoid taxes, it would be a benefit.
-- Scott Stewart ColdFusion Developer SSTWebworks 4405 Oakshyre Way Raleigh, NC. 27616 (919) 874-6229 (home) (703) 220-2835 (cell) -----Original Message----- From: J.J. Merrick [mailto:[EMAIL PROTECTED] Sent: Wednesday, April 30, 2008 8:39 AM To: CF-Community Subject: Re: retirement accounts You can roll over a 401(k) into a Roth but you will pay your current tax rate on the money... but there will not be a 10% penalty for an early withdraw. So if you have say $3000 in a 401(k) and you want to roll it to a Roth you will owe whatever your tax rate is on the $3000... so say 35%... at the end of the year be ready to send the IRS a check for $1050. And remember if you use any of the $3000 to cover the IRS payment you will be charged 10% plus your tax rate on that because it is an early withdraw. So... if you have $1050 laying around then I would roll it into a Roth... don't have $1050 laying around then a Traditional will be just fine. J.J. On Wed, Apr 30, 2008 at 7:24 AM, Rick Root <[EMAIL PROTECTED]> wrote: > On Thu, Apr 24, 2008 at 2:14 PM, Deanna Schneider < > [EMAIL PROTECTED]> wrote: > > > I think the de facto advice is to go with a Roth IRA, preferably one > > that holds no load mutual funds. Of course, you'll get the whole gamut > > of advice, depending on who you talk to. > > > > > You can't roll over a 401k into a Roth IRA because a Roth IRA is filled with > after-tax money, and it is not taxed at all on retirement. > > Roth IRA's *ARE* a good thing, but I'm almost positive you can't roll over a > 401k into it because you've never paid taxes on the money in the 401k. > > You have to put them into a standard IRA, which is what I did at one point > and then eventually rolled that into my Duke 403b. > > Now for your CURRENT retirement savings, a Roth IRA is an excellent choice. > > You should give Clark Howard a call. He's got a radio show that I listen to > regularly. > > Rick > > > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;192386516;25150098;k Archive: http://www.houseoffusion.com/groups/CF-Community/message.cfm/messageid:259365 Subscription: http://www.houseoffusion.com/groups/CF-Community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
