I am trying to figure out what to do with a small defined benefit plan from my fellowship. I was required to make mandatory pre-tax contributions to a DBP that have added up to ~$2000. Because I was only in the position for 1 year the employer match will not vest, but the plan allows me to take a lump sum separation benefit consisting of my contributions (with some interest) that can be directly rolled over into a Roth IRA. I've been researching this option but I cannot figure how this will affect my current and future investments. Can the rollover go directly into my current Roth IRA account or do I need to put it into a traditional IRA and convert it? Do I claim the lump sum as income on my income taxes next April to convert the funds from pre-tax to post-tax? Will this rollover affect my ability to do a backdoor Roth in the same fiscal year?
Thanks in advance for any help. I'm relatively new to WCI but I've learned so much in the past couple of months from reading the forums and prior posts. I just wish I would have heard about WCI sooner!
Thanks in advance for any help. I'm relatively new to WCI but I've learned so much in the past couple of months from reading the forums and prior posts. I just wish I would have heard about WCI sooner!
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