401K Rollover

[capnjim01]

I have a prospect who job has just been "down sized" and now has to do something with their 401K. They want to rollover part of it into a Roth I'm not sure it can be done without paying the tax and a 10% penalty.

What are the rules on this?

 

[moonlightandmargaritas]

http://pro.nuco.com/Pages/default.aspx

 

[xrac]

I have a prospect who job has just been "down sized" and now has to do something with their 401K. They want to rollover part of it into a Roth I'm not sure it can be done without paying the tax and a 10% penalty.

What are the rules on this?

I believe it can be converted into a Roth without penalty but the tax will be owed. Maybe a rollover to a tradition IRA is better with a gradual conversion of the money into a Roth.

 

[Tahoe Ray]

I have a prospect who job has just been "down sized" and now has to do something with their 401K. They want to rollover part of it into a Roth I'm not sure it can be done without paying the tax and a 10% penalty.

What are the rules on this?

How to Rollover Your 401k into a Roth IRA *READ THIS FIRST*

Doing a conversion rarely makes sense unless you can pay the taxes with "outside funds". Having lost their job, the timing may be difficult for your client.

 

[insure4real]

A couple of questions: what will the money be for? I would assume income stream?
How much are they looking to roll?
How old are they ?

 

[SWM]

There are many more questions that need answered before your question can be answered. What is their age, is there a future issue regarding provisional income testing, do they have additional NQ assets, do they have any other qual. funds, is there a spouse? These are things I would ask at the minimum before making that kind of recommendation.

 

[LGilmore]

amy?

Are you just getting started? just curious?

 

[DHK]

amy is an *** who has never been trained in retirement planning.

 

[amy793]

amy?

Are you just getting started? just curious?

Hello,

I'm 3 months into this company, so I am fairly new, but they have taught us many things about finances and what types of life insurances there are in the world. I am still learning because there are many things in this business to learn and perfect.

 

[Norwayguy]

As an licensed agent, I would suggest actually rolling the 401K into a whole life or permanent life insurance policy. There are many benefits that would be better than Roth IRA, especially if you find out if you're qualified for it or if you want a higher growth percentage like compound interest. My company provides great varieties of life insurances that are unrisky. And also can combine a living trust, which we have attornies to do that for you at the office, with life insurance, so you have the best of both worlds. Email me at [email protected] if you have any questions or concerns. :]

You do realise there is no rollover from a 401k to a life insurance policy. The client would need to withdraw funds and purchase a life policy and the withdrawals will be taxable and possibly subject to a 10% penalty tax if the client is under age 59 1/2, Yes that can be avoided by doing a 72t distribution but that requires substanstially equal distributions based on life expectancy for the greater of 5 years or until age 59 1/2. Please share with us this wonderful company you are working with.