So I recently had to cash out my 401k due to a job change and discovered I can roll over my 401k once a year into a Roth IRA. Funds are going from a pretax to a post tax account, so there will be tax payments in doing this. But this method gets around Roth IRA annual contribution limits? I'm 34 so I have many years of gains ahead of me, so getting as much money into my post tax accounts feels like a no brainer...why isn't this a common strategy? I only ever read about roll overs when you're close to retirement age, but the benefit would be greatest the earlier you start?
Submitted March 20, 2024 at 09:54PM by mmaynee https://ift.tt/lsP2ULS
