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Rollover 401k to roth

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  • Avatar Indest 
    Participant
    Status: Resident
    Posts: 43
    Joined: 12/19/2018

    I am currently a resident with an employer 401k. I also fully maxed my Roth for the yr. However, 401k is pre-tax and I am in the lowest tax bracket of my life. That said, can I roll over that money into my Roth now, even though I already maxed out for the year? I rather pay taxes now than later.

    I know this sounds dumb but if I am to decrease my tax burden, I should pay taxes now that I make resident salary.

    #234001 Reply
    Avatar jacoavlu 
    Moderator
    Status: Physician, Small Business Owner
    Posts: 2374
    Joined: 03/01/2018

    rare plans allow in plan Roth rollover of pretax plan assets. you should read the plan description to see if that is available

    you can’t rollover employee deferral contributions to an IRA or Roth IRA while you’re still employed

    does your plan have a Roth deferral option? you should consider that next year. Too late if you already maxed out 2019 contributions

     

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #234002 Reply
    Avatar Indest 
    Participant
    Status: Resident
    Posts: 43
    Joined: 12/19/2018

    My employer 401k has no Roth deferral option and my employer doesn’t offer Roth 401k :(.

    #234004 Reply
    Avatar Indest 
    Participant
    Status: Resident
    Posts: 43
    Joined: 12/19/2018

    My question now is, can I open my own Roth 401 k at a bank and then roll over what I contributed?

    Definitely trying to turn that $ into post tax.

    Anything else you guys can thing of?

    #234007 Reply
    Avatar ZZZ 
    Participant
    Status: Spouse
    Posts: 697
    Joined: 06/18/2018

    “Anything else you guys can thing of?”

    Covert it to a Roth when you graduate and take a job somewhere else. With only half of year of attending income, you’ll still be in a relatively low bracket.

    #234011 Reply
    Liked by Indest, SLC OB
    Avatar Indest 
    Participant
    Status: Resident
    Posts: 43
    Joined: 12/19/2018

    Thanks ZZZ. Not bad advice. Much appreciated.

    #234019 Reply
    Avatar Peds 
    Moderator
    Status: Physician
    Posts: 4405
    Joined: 01/08/2016

    please dont start a new thread on the same topic:

    https://www.whitecoatinvestor.com/forums/topic/question-about-roll-over-401k/

     

    your question was already answered there.

    #234026 Reply
    Avatar Indest 
    Participant
    Status: Resident
    Posts: 43
    Joined: 12/19/2018

    @peds, I didn’t want to bump an old thread and wanted some fresh insight to see if others had another idea. Anyhow, my bad. It won’t happen again.

    #234039 Reply

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