There are many changes for Roth IRAs in 2008, so I want to enlighten you to them. 

1. People are able to contribute $5k/year without being 50. If you are 50, you can save an additional $1k or $6k total.
2. Income limits are increased for contributing to a Roth IRA, $101k for singles and $159k for married filing jointly (the marriage penalty in effect).
3. All retirement plans are able to rollover directly into a Roth IRA.

The 3rd point is a huge change and very important.  Now if you leave an employer you can rollover your 401k/403b directly into your Roth IRA.  Yes you will pay taxes, but previously to 2008, you had to roll your 401k/403b into a “Rollover IRA” and then conver it to a Roth IRA.

However the income restrictions, for rolling into a Roth IRA is still present. You must make less than $100k married or single.  This income restriction however, will be revoked for 2010.  However, before you do the rollover, be aware the amount rolled over into a Roth IRA becomes taxable income.  This will bump you into a higher federal and state tax bracket potentially for the year.  Be aware because you could end up with a massive tax bill because it’s your salary + rollover amount; example: $50k salary + $25k 401k = $75k taxable income for the year, which is a 50% income increase for tax purposes.

I’ve considered doing this, but the taxes would be horrible for us.  And it would not be worth it.   Please consult a tax profesional before deciding what to do.

 http://www.irs.gov/publications/p553/ch03.html