Hi,

I'm a stay-at-home-mom who used to work and have accumulated a little bit in the 401K which I want to rollover in an IRA since I am not going back to my ex-employer.

1. Which path is best to take? Roth IRA or traditional IRA?

2. Since Roth IRA, takes the taxed dollars...it doesn't seem to make sense if I can roll-over the pre-tax dollars from 401K.

3. If I go back to work, combined income may go beyond 160K, can we still contribute to the Roth IRA?

Thanks.

General answers:

No 401k rollovers to Roth IRA allowed, only to traditional IRA.
If you qualify (filing status, modified Adjusted Gross Income less than $100,000, etc.), you can convert traditional IRA money to Roth IRA and pay the tax in the year of conversion. Whether that makes sense depends on your particular circumstances.
You can't make new Roth contributions if your AGI is over $160,000 and married filing jointly.

Thank you txdd for your reply. Really appreciate it.