| |
You are here: Experts > People/Relationships > Retirement Planning > Retirement Planning > 401b
Expert: David M Iannopollo - 10/26/2009
Question
I am recently retired, 60 years old and have a 403b of about $25,000. I would like to move this account into a Scottrade trading account. I currently have a Roth account with Scottrade. Is there anyway of rolling this account over without taking a tax loss. I can't find any indication that a 403b can be rolled over. Our joint income this taxable year is about $150,000.
Thank You,
Larry
Answer
Hi Larry,
403b's are eligible for rollovers, however, since a 403b is funded with pre-tax contributions and a Roth is funded with after tax contributions, you cannot rollover these funds to a Roth without paying taxes on the entire amount rolled over. Any transaction you make will be reported to the IRS.
If you did want to do this, you would want to pay the taxes from another source and not from your account as this would defeat your purpose,
That being said, at your age, you may not see any benefit by moving these funds to a Roth unless you were doing it for estate planning purposes and you wanted to leave tax free money to your heirs. You most likely would not save any tax in the long run. I hope this helps!
Dave
diannopollo@twcny.rr.com
Add to this Answer Ask a Question
|
|
