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 ronrutkowski
Joined: 21 Dec 2005
Posts: 1
0.07 Dollars($)
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 Posted: Wed Dec 21, 2005 11:59 am Post subject: Converting 401k Retirement Plan to Roth 401k |
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| What are the tax implications if I convert to the later.I am 63 and my 401 is 5+ yrs old. Thanks R.C.R. |
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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1597
Location: MASSACHUSETTS
148.36 Dollars($)
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| Posted: Wed Dec 21, 2005 12:18 pm Post subject: |
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Hi Ronrutkowski,
Welcome to MortgageFit Forums.
With 401 k roth one can make contribution after the age of 70 also. According to the IRS regulations, no qualified distribution from a designated Roth contribution account including earnings will be included to the income of the participant getting the facilities for plan benefits.
The main advantage of Roth plan account is that it is with after-tax free dollars. You may not get the benefit of the contribution from pre-tax dollars but you can withdraw tax-free money after retirement.
You can more information on the tax advantages under the sections on IRS rules and features and Roth 401(k) planning.
Feel free to ask in case of any more doubts.
God bless you.
for MortgageFit,
Samantha
_________________
Know how to compare lenders with mortgage booklet |
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jameshogg
Joined: 20 Dec 2005
Posts: 4189
Location: nevada
492.91 Dollars($)
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| Posted: Wed Dec 21, 2005 2:13 pm Post subject: |
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Generally speaking, the longer time period is left for retirement, better is the benefit to convert it to Roth. People as close as five years from retirement can also go for a conversion. Otherwise it may not help.
James |
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