I'm a bit overwhelmed after looking up information regarding rollover of my 401k into a Roth IRA. If I'm to be honest with myself, I'm not knowledgeable in the personal finance subject and really just need a couple of questions answered in simple terms.
I have no finance background and am fairly new to investing.
I have a 401k that is currently inactive. I haven't rolled it over to a new account after leaving my last job in 2011, so it hasn't grown.
In the next few years, I'd like to buy a house and would like to use my future Roth savings to put towards a down payment.
Ideally what I would like to do is take some of my money from my bank accounts and max out my Roth IRA contributions from 2015. Also, I'd like to rollover the $20,000 that I have in the inactive 401k into the same Roth.
I've never owned a house and I believe you can use the money from the Roth towards the purchase of your first property.
So here are my questions:
Can I contribute $5.5k into a Roth for 2015 from my personal checking account? If so, will i be hit with fees? I don't think so because I already paid taxes on the money in my bank account and Roth is after tax.
What is the best approach to rollover my 401k with $20k into the same Roth IRA? Is the backdoor Roth method real and should I consider it?
I will most likely have more questions later, bu this is a good start.