Yes. You can convert money straight from a 401(k) into a Roth IRA without routing it through a traditional IRA first. The transfer is called a direct rollover or trustee-to-trustee transfer, and the plan administrator sends the money to your Roth IRA custodian. You never touch it.
Most people assume the path has to be 401(k) to traditional IRA to Roth IRA, in two hops, because that is how the articles usually describe it. The two-hop route works, and it is sometimes the right one. But the IRS allows the direct version too, and for a lot of people it is simpler: one transaction, one 1099-R, one tax year.
What the direct conversion costs you in tax
The tax rule is the same either way. Every pre-tax dollar you move into a Roth IRA becomes taxable ordinary income in the year of the conversion. Convert $40,000 of pre-tax 401(k) money and you add $40,000 to your taxable income for that year. There is no income limit and no dollar limit on conversions. The limits that block high earners from contributing directly to a Roth IRA do not apply to conversions at all.
Two parts of a 401(k) get different treatment. Pre-tax contributions and all their earnings are taxable when converted. Roth 401(k) contributions were already taxed, so rolling that portion into a Roth IRA is tax-free. The wrinkle is employer match money: under older rules the match was pre-tax even inside a Roth 401(k), and under SECURE 2.0, employer contributions made in 2023 and later can be made on a Roth basis, though many plans have not adopted that feature. If your rollover includes pre-tax match money, that slice is taxable when it converts. Your plan administrator's records sort out which dollars are which, so ask for the breakdown before you convert rather than after.
Here is a plain example. You have $120,000 in a traditional 401(k), all pre-tax. You convert $30,000 directly to a Roth IRA in 2026. You owe income tax on $30,000 for 2026, at your marginal rate. The remaining $90,000 stays pre-tax. You could convert it in later years, a little at a time, which is exactly what a Roth conversion ladder is: a series of annual conversions sized to your bracket.
The one mistake that costs people 20 percent
The direct route has a specific advantage, and it is the reason I recommend it over taking a check. If the money is paid to you instead of transferred directly, the plan must withhold 20 percent for federal taxes. Convert $50,000 indirectly and you receive a $40,000 check, with $10,000 sent to the IRS. To complete a full $50,000 conversion you then have to come up with the missing $10,000 from another source and deposit the full $50,000 into the Roth IRA within 60 days. If you only deposit the $40,000 you received, the $10,000 withheld counts as a distribution: taxable, and possibly hit with the 10 percent early withdrawal penalty if you are under 59 and a half.
The direct transfer skips all of that. No withholding, no 60-day clock, no scramble to replace money. You still owe the tax on the conversion, but you pay it from your own funds when you file, or through estimated payments, instead of watching the plan administrator carve it out of the rollover.
One gate to check first: if you are still employed, your plan may not let the money move at all. Many plans restrict in-service distributions, meaning you cannot roll money out while you still work there. If that is your situation, you wait until you leave the job, retire, or reach the plan's specified distribution age. If your plan allows in-plan Roth conversions, that is a third path worth asking about: the money converts to Roth inside the same 401(k) without leaving the plan.
And one clock to respect. Converted principal has its own 5-year rule. If you are under 59 and a half, each conversion generally needs to sit five years before you can withdraw the converted principal penalty free. That is why the ladder strategy staggers conversions years ahead of when you need the money. The direct route gets the money into the Roth; the calendar decides when you can spend it.
So: yes, direct from a 401(k) to a Roth IRA is allowed, the pre-tax portion is taxed as ordinary income in the conversion year, and the trustee-to-trustee transfer is the clean way to do it. Run the size of the conversion through the ladder calculator before you commit, because the tax bill lands in the same year as the conversion, and sizing it to your bracket is the whole game.
Frequently asked questions
Can you do a Roth conversion directly from a 401(k)?
Yes. You can convert pre-tax 401(k) money directly to a Roth IRA through a trustee-to-trustee transfer. The pre-tax amount is taxed as ordinary income in the year of the conversion.
Can you convert a 401(k) to Roth while still employed?
Only if your plan allows in-service distributions. Many plans restrict withdrawals while you still work there. If yours does, you wait until you leave the job, retire, or reach the plan's distribution age.
Is there an income limit on 401(k) to Roth conversions?
No. Roth conversions have no income limit and no dollar limit. You can convert $10,000 or $1 million regardless of income. Direct Roth IRA contributions are the ones with income limits.
What happens if I take the 401(k) money as a check instead of a direct transfer?
The plan must withhold 20% for federal taxes, and you have 60 days to deposit the full amount, including the withheld portion from another source, into the Roth IRA. Miss the deadline and the amount becomes taxable and possibly penalized.
Is a Roth 401(k) to Roth IRA rollover taxable?
No, for the Roth portion. Roth 401(k) contributions were already taxed, so rolling them to a Roth IRA is tax-free. Any pre-tax employer match money included in the rollover is taxable when converted.
Plan your conversion ladder by tax bracket
Sources: IRS retirement plan conversion and rollover rules; IRS Instructions for Forms 1099-R and 5498; SECURE 2.0 employer contribution provisions. Figures verified October 2026.