With the economy being the way it is, and with people living much longer than they used to live, retirement options are becoming more and more crucial. Something that seemed like a good idea 20 years ago may not be your best option anymore. People are exploring all kinds of options to ensure that their retirement is paid for. Many people have asked themselves the following question: Can I roll my 401k to a Roth IRA? The answer to this is yes. More and more people are choosing IRAs over 401ks, largely because of the amount of control an individual can have over an IRA. However, even if you have 401k already, you can go ahead and say to yourself, can I roll my 401k to a Roth IRA? I can.

If you are wondering, when the best time—and can I roll my 401k to a Roth IRA?—then here’s the answer. It is when you are switching jobs. You may not have to move all of your 401k money, but rolling it over helps to avoid high fees that your former employers will try to charge you. If you don’t like your former employer, rolling over your 401k to a Roth IRA is a good way to cut ties from them.

However, you must meet certain qualifications before you decide can I roll my 401k to a Roth IRA. If you are single and your income is more than $116,000 per year, then you are making too much money to qualify for this rollover. In addition, if you are married and you and your spouse are making more than $169,000, you are also out of luck. Both those who are single and those who are married that make too much money to qualify for a Roth IRA rollover still have the option to rollover to a traditional IRA. However, you will still be required to pay withdrawal taxes, something you don’t have to worry about with a Roth IRA.

When deciding how can I roll my 401k to a Roth IRA, consider what is the best way to invest in a Roth IRA. Most people decide to rollover to a mutual fund, but you can also assign certain bank accounts and stocks as your Roth IRA. In other words, you can choose how to invest the money you are rolling over into your Roth IRA. If you are unsure about what to do, mutual fund companies are more than willing to provide their services. Some of these companies include Fidelity, Vanguard, and T. Rowe Price.

The one downside of rolling over a 401k into a Roth IRA is that you have to pay taxes on the amount of 401k money that is rolled over into your new Roth IRA account. This can’t be avoided because you are transferring money from a pre-tax source to a post-tax source. If the taxes become too high for you to pay, you may want to consider a traditional IRA before rolling over to a Roth IRA.