The Details of a 401k Rollover to a Roth 401k

In order to complete a 401k rollover to a Roth 401k, there are a few things that you will need to do. Many people are converting over to this type of account so that they will not need to pay taxes on their 401k funds in the future. Here are the basics of how to roll over a 401k to a Roth 401k. 

Alert Provider

The first thing that you will need to do is alert your 401k provider that you want to transfer your funds to a Roth 401k. They will provide you with documentation that you will need to fill out in order to complete this process. They might transfer your funds to another type of account, or they will simply change the designation and leave the funds in the same account.


In order to move over to Roth 401k status, you are going to have to pay taxes on the amount of money that you have in your 401k. The money that you roll over is going to be treated as taxable income. This means that you will have to pay taxes on the money that you roll over based on your marginal income tax rate. Before the rollover will be complete, you have to address the taxes with the IRS.

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