Retire without taxes

Only one savings plan gives you the chance to free yourself from taxes in retirement. Are you making the most of it?

7 of 12

7. Can I convert my 401(k) to a Roth?

• Ultimate guide to retirement
• More retirement stories

Until you change jobs or retire, you typically can't roll your 401(k) into a Roth IRA. And you can't convert your plan into a Roth 401(k). But between jobs or at retirement (at 55 or older), you're free to switch your 401(k) to a Roth IRA as long as your income allows it ($100,000 or less until 2010). New in 2008: You no longer have to first roll it over into a traditional IRA and then convert it. You can now go directly.

NEXT: How do taxes work with Roth conversions?

Last updated September 16 2008: 11:34 AM ET

Email | Print |

Digg this story |

RSS

More retirement

• Is it ever okay to take out a 401(k) loan?

• Early retirement? Why it pays to stay

• Retirement: Win the game of risk

More Galleries

8 great summer vacation deals

Want the perfect summer getaway? MONEY searched for destinations with balmy weather, unique attractions, fun stuff to do, and great deals from four different categories: beach, mountain, culture and city. More

Best ways to catch up on your retirement savings

Even the most financially responsible people make a few mistakes or run into obstacles along the way. These tips -- from cutting taxes to selling securities -- can preserve a safe retirement. More

Nearing retirement? Fortify your finances

Your financial goals are within reach. Here are tips and tools to make sure you achieve them. More

Special Offer