Ask Terry Questions Roth 401k Conversion

Roth 401k Conversion

By Terry Savage on September 02, 2013 | College Savings / Student Loans

Dear Terry,
When leaving or retiring from a firm, can a person’s Roth 401k account be converted directly to a Roth 401k without incurring taxes or penalties?

SAVAGE SAYS: I’m sort of going to punt on this and send you to the real experts. I would suggest your contact Fidelity or Vanguard about your specific situation. This is a complex situation — but they will have all the answers for you, I’m sure. And you want to do it correctly because you want to prolong tax-deferred growth, with no required distributions. In fact, I’ll be interested to see what they say about doing a rollover into a Roth IRA, so please let me know what they advise?– Terry



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