How much can be rolled over from 401K to Roth IRA?

[rogerme]

It seems that it's most beneficial to roll your 401K over to a Roth IRA before returning to Canada (if you were a nonresident of Canada).
My question is - isn't the Roth IRA limited in how much you can contribute? Is it possible to roll over the entire 401K amount, or do you send some into a Roth IRA and the rest into an IRA?

Thanks for your help

[nelsona]

For the past couple of year, the limitations on Roth conversions has been removed.

You can convert the entire amount. You can convert less that that if you wish.

Of course, you will pay US tax on the entire conversion, as it will be added to your income for that year, but, as you are likely realizing, that is still better than having the entire 401(k) fully taxable in canada forever.

[NECdn]

"the entire 401(k) fully taxable in canada forever"

nelsona, I would like to make sure I am not misinterpreting your statement. I thought the 401(k) [and 403(b) and 457's etc] were tax-deferred in Canada much like an RRSP - taxable only in the year the income is realized. Did I get that wrong? I hope the gains are not taxable each year through its life even before retirement?

[nelsona]

Yes, when I saif fully taxable forever, I meant any income pulled out of the 401(k)/IRA will be fully taxable in canada, no matter when it occurs.

I guess the "forever" part is more aptly applied to Roth: If done properly, the Roth will be non-taxable forever.