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Leaving job - 401k to Roth IRA?

Bogleheads • View forum - Investing - Help with Personal Investments - www.bogleheads.org
I am planning to leave my job and start a business. I am trying to max out my 401k for the year before I leave. I will keep the 401K as it is with my employer as I am happy with their structure. I don't expect to make much money in the startup this year (being realistic). I never qualified for Roth IRA before because of being above the income limit. But, may be now I do?

My questions:

1. Can I open a Roth IRA account as soon as I leave my job ad put in the yearly contribution amount? Does the income limit rule apply to the latest day situation or is it based on past year's earnings? When do I become eligible after leaving my job (and having no income)?

2. Can you contribute to 401K and Roth IRA in the same year for a situation like this? (401k when employed, and Roth when not employed)

Anything else I need to watch out for? Any suggestions or tips would be welcome for my situation.


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