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Author: MoFoGeorge Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75781  
Subject: 401K bad, IRA good no? Date: 7/13/1998 5:33 PM
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I am about to dive into the waters of Foolish self-directed investing for early retirement, and I'm quite fond of the tax-free returns the Roth IRA affords... but the $2000 per year limit on contributions is already cramping my style before I've gotten my toes wet. What I want is a vehicle to circumnavigate this shallow wading-pool limit. I have an idea that involves my employer's Wise 401K plan (read sub-par returns and no matching contributions) but I'm not sure it's possible. If I contribute a portion of my salary into this 401K, can I then periodically (monthly, quarterly, or annually) transfer the balance into a conduit IRA, or is the option to transfer the balance into an IRA available only upon termination of employment? IF I can get it into the conduit IRA, THEN of course I can move it next into a Roth IRA, right? The inequity between contribution limits on IRA's and 401K's really irritates me. I mean, do our lawmakers really think it's in our best "interest" to let the Wise shape our retirement investment choices when any Fool could choose investments with better returns?
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