rollover conversion Roth

[MikeWaters]

My financial advisor tells me that I should roll over my 401k and my 403b as well as my SEP into a conversion Roth IRA this year. He says this is permissible as long as you make less than 100k/yr. He says that this would be by far the best thing (despite the tax penalty of converting it to Roth).

What do you guys think?

[Robin]

Originally Posted by MikeWaters

My financial advisor tells me that I should roll over my 401k and my 403b as well as my SEP into a conversion Roth IRA this year. He says this is permissible as long as you make less than 100k/yr. He says that this would be by far the best thing (despite the tax penalty of converting it to Roth).

What do you guys think?

I think this would be a really bad idea. Roth rhymes with Thoth, Hoth, and moth. So it pretty much goes without saying that unless you are interested in false gods, frozen planets or wool-eating larvae, you should keep your money in safe mixes of letters and numerals.

Just my two cents.

[DirtyHippieUTE]

Originally Posted by MikeWaters

My financial advisor tells me that I should roll over my 401k and my 403b as well as my SEP into a conversion Roth IRA this year. He says this is permissible as long as you make less than 100k/yr. He says that this would be by far the best thing (despite the tax penalty of converting it to Roth).

What do you guys think?

I would say it is a good idea because I rolled mine a few years ago. I paid the tax penalty with separate funds (rather than from the principle). My good friend is my financial advisor. We spent a day or two going over numbers and decided it was best for me.

I would go with the advice of an advisor vs. the guys on CG. The benefits or drawbacks are very situation specific.

[Robin]

Originally Posted by DirtyHippieUTE

I would say it is a good idea because I rolled mine a few years ago. I paid the tax penalty with separate funds (rather than from the principle). My good friend is my financial advisor. We spent a day or two going over numbers and decided it was best for me.

I would go with the advice of an advisor vs. the guys on CG. The benefits or drawbacks are very situation specific.

Sure, and the rebel aliance thought a Hoth IRA was a good idea too.

I would roll all of that money into a C3PO.

[fuegote]

If you're not at a high tax bracket it is fine. The reason is the Roth will then continue to grow tax free so when you retire, you can pull those funds out at any time, tax free on any growth.

also, if you need ot pull funds out for whatever reason, you can pull principle out of a roth at any time without penalty.

with a rollover IRA you'll be taxed for any withdrawl on principle and growth, plus if you withdrawl before 59.5 years, you'll pay 10% early withdrawl penalty.