Can we convert pre-tax 401k from Microsoft to Individual Roth IRA?

Jun 23, 2020 3 Comments

I know for post-tax the option is shown in Fidelity but is it doable even for pre-tax or it can only be done when you leave Microsoft?
#microsoftbenefits #microsoftemployees #401k

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TOP 3 Comments
  • Amazon / Eng
    Mufasaa

    Go to company page Amazon Eng

    Mufasaa
    You could possibly do it 2 steps:
    1. Traditional 401k to Rollover IRA.
    2. Rollover IRA to Roth IRA. You will have to pay tax and do some complex tax calculation depending on whether you have any other traditional flavoured IRAs.
    Jun 23, 2020 0
  • VMware
    burned

    Go to company page VMware

    burned
    No you can't, even after you leave the only conversion available is to Rollover IRA, not ROTH.
    Jun 23, 2020 0
  • Why do you want to do that? Microsoft has a separate Roth IRA Contribution if you want.

    They have;
    1. Pre-tax 401k
    2. After tax
    3. Roth IRA
    Jun 23, 2020 0