The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: Rollover IRAs||Date: 8/25/2006 11:32 AM|
|Author: Watty56||Number: 53307 of 76419|
When you roll the IRA out of one provider to another you may get hit with a processing fee of something like $50 dollars.
More post mortem flexiblity.
Translation: Currently if you are not married, or both you and your spouse get killed in a car crash, then your kids(or whoever) gets zinged big-time with taxes on the inherited 401k, a lot more than with an rolled over IRA. Apparently this is improving somewhat with the recent tax law changes but I don't know the details.
Important Note: If the 401K has company stock in it you could be in a different ball game and the rollovers can be completely different tax wise. You need to know the tax consequences on moving any company stock before you do anything.
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|