Re: Contributing to both the Roth IRA and 401(k)
I'm not a CPA, but I've been reading up on this stuff.
As I understand it, you can do the conversion today but there is an income limit. If you're looking at these laws, chances are you're already past that limit. Not only is there an income limit, there is also an early distribution penalty of 10%. The law we're refering to eliminates the penalty and also lifts the income limit.
If you quit your job today, you can roll your 401k into an IRA which can then be rolled into a Roth IRA at another time. Some taxes and penalties along the way. I've never done it myself so I can't say from personal experience. But if by 2010 you can't changed jobs yet, then you might be out of luck.
Again, I'm not a CPA. I think it might be wise to spend a few bucks to potentially save thousands. Don't want to mis-plan and screw the whole thing up.
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