In the Video above, Scott Farnsworth, Central Florida's Tax-Free Retirement Expert answers a frequently asked question:  Can I roll over my 401(k) assets directly into a Roth IRA?

"No, you cannot roll your assets from a 401(k) or an IRA directly into a Roth-IRA. You would do something we call a Roth conversion. Basically, the Roth conversion requires that you pay the tax on the money that is moving from the 401(k) or the IRA into the Roth. Then, the money is put into a tax-free posture inside the Roth. Besides a conventional Roth conversion that I just described, you may also want to consider what I call a super Roth conversion. Rolling those taxable dollars, paying the taxes, and putting them into the TRA or the Tax-free Retirement Account. It has all the benefits of a regular Roth and some additional features that make it a highly desirable tool for someone striving to have a flexible and tax-free retirement."

To see more videos by Scott Farnsworth, see our Frequently Asked Questions Videos page, Tax-Free News page, or our YouTube channel.  

Can I roll over my 401(k) assets directly into a Roth IRA?