Why can a Roth IRA be rolled over into a designated Roth account in a 401k?
There is really no good reason to do this except to keep all money in one account. Currently there are no rules that allow a direct conversion. The money in a Roth IRA has already been taxed. If you could roll the money into a 401K, you would be responsible for keeping the accounts separate, and then proving to the IRS that you took money from the Roth account and not the 401K account. There is an automatic 20% withholding on any money withdrawn from a qualified plan. Plus, money contributed to a 401K must be pretax income, not a lump sum deposit from some other source. You can make a withdrawal from a Roth IRA as long as the money has been in the plan for 5 years and you have reached age 59 1/2, but you can’t make withdrawals from a 401K while you are still working, unless it is a hardship withdrawal. You can only make loans if the plan allows it. Secondly, there is no advantage between a IRA, 401K and a Roth IRA as far as accumulating money is concerned Both yield the same results. T
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- Why can a Roth IRA be rolled over into a designated Roth account in a 401k?
