How Much Does It Cost To Convert 401K To Roth IRA?

  1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    In order to convert a 401(K) to a Roth IRA you must pay income tax on the entire amount of the 401(K.)  The Roth deals with after tax dollars and the 401(k) has only “untaxed” dollars, unless there are excess contributions allowed which are made with after tax dollars.  There are times when this is a very smart move, though, and should not be discounted.  In the long run, the Roth IRA is received income tax free which might be a greater benefit.
    Answered on August 15, 2014
    flag this answer
    2. Did you find these answers helpful?
    Yes
    No
    Go!

Add Your Answer To This Question

You must be logged in to add your answer.


<< Previous Question
Questions Home
Next Question >>