Rollover tax question

[WharfRat+]

I want to rollover an old 401k into a Roth. I know I will have to pay taxes on this, but my question is, If I roll this thing over before April 15, can it be counted as the 2007 tax year? I made less $ in 07 than I will in 08 and if I roll it over in 08 i will be a higher tax bracket, thus I will have to pay more $ to roll it into the Roth.

Thanks for any info.

PS - I check this forum every day...wish it was more active though.

 

[EasyMoney]

I'm about 99% sure that you can count it towards the '07 tax year as long as its done before april 15th. I'm actually in the process of doing the same thing right now. But my question is when are the taxes due? Are they due when the rollover happens or on april 15th?

 

[WharfRat+]

Well I hope you're right.

I usually do my taxes myself and haven't really ever sold any investments so I'm looking for any info I can gather.

Thanks for responding.

 

[EasyMoney]

also where are you getting the roth at. If your using a differant broker than where your current 401k, (whitch I'm assuming you are) than you will likely have to roll it into another 401k or Traditional IRA and then into a roth ira. I just did this with Tradeking. I had to roll my existing traditional IRA into a traditional IRA at tradeking and then roll that traditional IRA into the Roth IRA. Don't ask me why but thats how they made me do it.