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Complete fool here new to the ways of the IRS. Can someone transfer out of their 401k with a company (say they quit) to an IRA set up at a discount brokerage ? Is this done without penalty ?

As I understand it an IRA has a $2000 limit for the amount you can discount from your yearly income, as opposed to a 401k which is upto 15% of your income .... is there another simple mechanism outside of a corporation which allows for a better tax shelter...
This may be gibberish, but I am truly confused.
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