hey this is jeff rose goodfinancialcents.com today i want to talk about how you roll over your 401k into a Roth IRA if you left your job or if you’re still working if you meet a certain age requirement you can now roll over your 401k directly into a Roth IRA that’s right before you had to take the 401k go to a traditional IRA and then convert it which was a big pain the button from a financial advisors perspective was a lot of paperwork and just wasn’t that much fun to do but now typically you can go directly from a 401k into a Roth IRA if you meet these requirements one you cannot be working at your job anymore you either had to quit or retire unless you meet certain age requirements we’ll talk about in a second but once you actually leave or they’ll call it separation from service you can then convert your 401k into a Roth IRA now remember when you do this you have to pay the taxes you have to claim this as income for your income taxes for that year and pay the appropriate taxes so don’t think that you’re doing this and it’s not a taxable event it is even though you go directly to it you still have to pay your tax so please keep that in mind now I keep saying with a certain age requirement well here if you are 59 and a half and you’re still working and if you choose you can do an in-service distribution and then convert that directly into a Roth IRA now is that advisable it depends on your situation some people like the idea of paying their taxes now so they have tax-free money later retirement because I think taxes are going to go up if you are in this camp then converting your 401 came to the Roth IRA makes a whole lot of sense now also keep in mind that you don’t have to convert the whole thing you can do a partial conversion so you’re not obligated to do the full thing so that’s how you roll a 401 K directly into a Roth IRA if you got any more questions you know where to find me goodfinancialcents.com take care