kbesada
I am financial professional myself and have questions concerning the rollover of a Non-Qualified Single Person 401k to a Roth IRA in the year 2010. I have done a ton of homework on this, but I pride myself on my ability to follow through for my clients and the last thing I want is to put together a retirement plan that does not adhere to tax guidelines discussed at the time of presentation.
Situation: Husband and Wife both Self-Employed individually. Earning about 400-500K Year. Wife has two P/T employees that work <20hours/week. One is 50 Years old, the other 47.
First I want to know if rolling the Single(k) to the Roth IRA is direct or if it must be done by first rolling over to a Traditional IRA?
Is there a maximum amount that can be rolled over in 2010? I ask because over the next two years I can put $31K/pp with matching provisions for my self-employed client. Even more with the older of the two due to catch-up provisions. With the Roth I can only do $5K or $6K with catch-up.
My goal is to max out 401k contributions after taxes and roll over to Roth in 2010 to take advantage of the tax implications.
Any answers/thoughts/concerns?
Situation: Husband and Wife both Self-Employed individually. Earning about 400-500K Year. Wife has two P/T employees that work <20hours/week. One is 50 Years old, the other 47.
First I want to know if rolling the Single(k) to the Roth IRA is direct or if it must be done by first rolling over to a Traditional IRA?
Is there a maximum amount that can be rolled over in 2010? I ask because over the next two years I can put $31K/pp with matching provisions for my self-employed client. Even more with the older of the two due to catch-up provisions. With the Roth I can only do $5K or $6K with catch-up.
My goal is to max out 401k contributions after taxes and roll over to Roth in 2010 to take advantage of the tax implications.
Any answers/thoughts/concerns?