I will be converting my 401k money, approx. $6,000, from my ex employer to an IRA. Can/should I go Roth? | 401k Questions

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Asked 12/15/2008

I will be converting my 401k money, approx. $6,000, from my ex employer to an IRA. Can/should I go Roth?

Can I convert the 401k money from my EX employer into a Roth IRA? Should I do this or convert it to a normal IRA?

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Answer 1/1 - Submitted 12/16/2008

You can if your total income is within the guidelines. You would have to pay income tax on this money the year you put it into a Roth. However, when you take it out in retirement there would be no tax. I guess which is better would be your judgment. Most people like the Roth idea.

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