No. of Recommendations: 1
I have thoroughly read all the information on IRA's on and can't seem to find an answer or advice for my situation. I need to convert my 401K (which is less than $5K) from my previous company's pension plan. I know I want to invest in a Roth IRA. I have been told by an on-line broker that I cannot comingle funds if I roll the 401K directly to a Roth - which means to me that I can't make contributions to the Roth acct. in the future since the source of the monies is different (cash and 401K)? Is is better to take the tax penalty and have the 401K funds issued to me and then establish a Roth IRA with the remaining funds which will enable me to make contributions each year? My intention is to invest the Roth funds in stocks.

Any advice and assistance would be greatly appreciated.

Foolishly confused.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.