Re: 401K forced rollover?

On Apr 19, 4:28 pm, Will Trice <wtr...@[EMAIL PROTECTED]
> wrote:

> > income limit goes away in 2010) you may not separate the pre-Tax
> > contributions from post tax. If you could do so, you can (and should)
> > convert only post tax deposits, and therefore pay no tax upon
> > conversion.
>
> I disagree (with the last sentence).  If it makes sense to contribute to
> a Roth vs. a deductible IRA/401(k), then it may make sense to convert
> pre-tax IRA money.  It's really the same decision isn't it?

Not necessarily. It's a matter of timing. Converting pre-tax dollars
may bump up a tax bracket in a specific year but not in another year
and vice-versa. Converting non-deductible dollars doesn't require
paying tax on the contribution.

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