Navigate rules for Roth IRA rollovers — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Navigate rules for Roth IRA rollovers

Get PDF file

by on
in Small Business Tax

Q. I am age 72 and operate a sole proprietorship generating about $50,000 in net income. Can I contribute the $50,000 to my Roth 401(k) and then roll it over tax-free into a Roth IRA? A.T., Reston, Va.

A. Not exactly. First of all, the maximum amount you can contribute to a Roth 401(k) for 2009 is $22,000 ($16,500 for taxpayers who aren’t yet age 50). Second, you must ensure that the plan documents permit in-service withdrawals. Therefore, you may be able to roll over up to $22,000 tax-free to a Roth IRA before Jan. 1, 2010.

Related Articles...

Leave a Comment

Previous post:

Next post: