kastnna wrote:
> On Apr 21, 4:24 pm, Heather <HeatherR...@[EMAIL PROTECTED]
> wrote:
> > Can a 401k Plan/Plan Administrator restrict rollovers to certain
> > types of IRA accounts? Specifically, when an employee is
> > terminated and wants to take a full distribution/rollover to an IRA
> > and close their existing 401k account, can the Plan/Plan
> > Administrator say they will only allow direct rollovers to
> > Traditional IRAs and not to Roth IRAs, even though rollovers to
> > Roth IRAs became allowable by law on January 1, 2008? Does the
> > Plan/Plan Administrator have that authority? ...
> P.S. - If the 401k was pre-tax money you will have to pay taxes to
> convert to the roth. This may or may not affect your actions, I just
> wanted to make sure you were aware of it.
Isn't the direct Roth rollover more of a convenience thing? Heather
should still be able to roll to a traditional IRA, then convert it to a
Roth. I don't know that much about the new law, so there may be
features I don't know about.
Brian
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