Roth Conversion Bleg
By Bryan Caplan
Greg Mankiw’s rarely-offered financial advice has put me in a mild panic:
[I]n light of the fiscal situation we are facing, I will pass along one tidbit. Consider converting some of your retirement savings into a Roth IRA. Over the past few years, I have converted all that I can, which is about half of my retirement savings.
The last time I investigated this, I couldn’t take advantage of the Roth conversion because only 401k, 403b, and 457 plans from previous employers were eligible. Since GMU econ has been my only real job, I seemed to be out of luck. However, the law changed in 2010, and reading the most recent google hits, I still can’t quite figure out if people in my situation remain ineligible.
Mankiw’s ability to take advantage of the Roth conversion amplifies my doubt. Unless he quit Harvard to work at the CEA, hasn’t Mankiw been with the same employer even longer than me?
If you know the definitive answer, please share it, with references.