Can 401(k) be rolled over to Roth IRA directly?

Technical topics regarding tax preparation.
#1
mariaku  
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367
Joined:
11-Jul-2014 1:19pm
Location:
Oakland, CA
My 22yo daughter is quitting her job where she had a 401(k). She already has a SEP IRA and a Roth IRA from before.

Will she be allowed to roll over her 401(k) balance directly to Roth IRA (Yes, I understand it'd be a taxable conversion)? If not, and she must roll over to a Traditional IRA first, may it be her SEP IRA, or must she open a separate Traditional IRA just to hold the rollover from her 401(k) for a few days till she converts it to her Roth IRA?

Please advise on the simplest legally-allowed way to get her 401(k) balance into Roth.

Thank you,

MK
 

#2
HowardS  
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2860
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21-Apr-2014 3:12pm
Location:
Southern Pines, NC
She has options. Refer to this chart:
https://www.irs.gov/pub/irs-tege/rollover_chart.pdf
Retired, no salvage value.
 


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