The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/fyi-when-you-roll-the-ira-out-of-one-provider-to-24509794.aspx

Subject:  Re: Rollover IRAs Date:  8/25/2006  11:32 AM
Author:  Watty56 Number:  53307 of 75807

Fyi,

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.

Greg

Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us