Q. I really like Roth IRAs and have one that I've fully funded each year. I've got $20,000 in a 401(k) account through my employer. Can I roll this over into the Roth IRA I have?

A. Probably not.

Unless you are leaving your job, or your 401(k) plan allows for something called in-service distributions, you can't convert the 401(k) into a Roth IRA, said Merna Justic of Honolulu-based Financial Security Planners.

Even then it would take you several steps to roll the plan over into an IRA and then convert that into a Roth IRA. And you'd have to pay state and federal taxes that might make the move infeasible, she said. You'll need to talk to your plan administrator or read the rules to see if in-service distributions are allowed.

You would have a tax liability because you contribute to your 401(k) before taxes on the money. You are taxed, though, when you begin taking money out of the plan. People favor this because the money is usually drawn when they are retired and aren't in as high of a tax bracket.

The Roth IRA is almost the reverse of that. You invest money you've already paid taxes on, and when you retire you get the funds tax-free.

Greg Miyashiro, a Wai'alae-Kahala financial adviser, said you should take a long look at the potential taxes you'd have to pay. Taking a $20,000 distribution could push you into a higher tax bracket, he said.

He recommended you check with your financial or tax adviser on the tax consequences if it's possible for you to do the conversion to a Roth IRA. He said there are other options, though.

"It might be smarter to keep what he has and see if his employer offers a Roth 401(k)," Miyashiro said. The Roth 401(k) debuted in January. While an option that you should consider, you may find your employer doesn't include it among retirement offerings because it's so new.

Like the Roth IRA, the Roth 401(k) allows people to invest after taxes. But the new plan allows single people to put in up to $15,000 a year for people younger than 50 versus the Roth IRA, which has a $4,000 limit.

There are also income restrictions on Roth IRAs that limit what people can contribute. For those who are single, the amount you can contribute starts phasing out at $95,000. For married couples, the restriction begins at $150,000.

The same income restrictions don't apply to the Roth 401(k).

Do you have a question about personal finance, taxes or other money matters? Reach Akamai Money columnist Greg Wiles at 525-8088 or gwiles@honoluluadvertiser.com