Originally Posted by
Drone
To answer, yea that is exactly what I do. Is it any better? It is the same action, however, because the money is now in a Roth IRA, it will not be subject to RMD like 401k money becomes at age 70. The 401k Roth is still in the 401k plan (earnings are still tax free as its Roth money), but you will be required to take distributions unlike the IRA. I like the freedom of determining when and how much of my Roth money to cash in as I will use it to offset taxable income. The hope is I can lower my tax bracket on retirement income.
The main "unknown" in all this planning is if/when the politics / "needs" of the US change to the point where the Roth IRA is considered a free ride that the wealthy enjoy in retirement that many were not able to afford and therefore should now be taxed as a wealth tax or an asset tax.
Unfortunately, I envision a day in the not too distant where it is actually considered more "fair" to take from people with Roth IRA's because those who used the Roth were obviously more well off than those using the other "pre-tax" IRA vehicles.
Good luck to us all.....