Deciding Between Traditional and Roth IRAs For 401(k) Rollovers

Ed Slott was named "The Best" source for IRA advice by The Wall Street Journal and called "America's IRA Expert" by Mutual Funds Magazine. He is a widely recognized professional speaker and educator specializing in retirement distribution planning, teaching both financial advisors and consumers how to best take advantage of our complicated tax code.

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Comments (1)
In question #1, couldn't she rollover her prior 403-B either directly to her new 403-b, or to an IRA first and then to the new 403-b if the new 403-b would accept either rollover ?

For question # 2, I suggest that he meet with a tax advisor to do tax planning. I usually suggest at least doing conversions that are taxed in the 15% tax bracket. Those in the 25% tax bracket take more analysis, but in general all surviving spouses and adult beneficiaries will be taxed at 25% when they take the distributions themselves.

For question # 3, he is actually required to take that "MINIMUM" distribution from his 401-K each year after 70 1/2, not a "maximum" one. He is permitted to take any higher amount each year, and that extra amount can vary, and these distributions can be taken whenever needed during each calendar year, whether monthly, annually, or periodically.
Posted by DAVID L Z | Saturday, September 22 2012 at 12:05PM ET
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