Can I convert my 401k to a Roth IRA?

Answer by  timeismoney (994)

No. A 401K is a retirement savings plan arranged through your employer into which you make tax deferred deposits, meaning that money directed toward the 401K comes "off the top" before your salary has been taxed. This is much like a traditional IRA, whereas a Roth IRA does not allow tax deferral at time of deposit.

Answer by  DavidS (1517)

Yes you can. It is called a rollover. You roll your 401k over into an IRA. I believe you have to have your IRA already set up to do this.

Answer by  cynosure (376)

Yes, a 401k can be rolled into a Roth IRA. Note, however, that 401(k) rollovers are treated as a taxable event, and you will be taxed on any pre-tax contributions.

Answer by  tamarawilhite (17883)

Not without paying taxes. 401Ks are pre-tax money. Roth IRAs are post-tax money. If you roll over a 401K to a Roth IRA, you pay your current income tax rate on the entire value of the account. If you roll it into a Traditional IRA, though, there are no taxes applied.