Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
An expert will surely answer your question completely, but here's my layman's explanation:

1. Roll over the account directly to the brokerage to a traditional IRA so the 401(k) company doesn't have to hold money for taxes.

2. The only advantage to rolling it over into a new traditional IRA is that these rollover funds will be isolated and, should you choose to, can be re-rolled back into a 401(k) with a future employer. It seems to me why would you ever roll an IRA back to a 401(k), but I went ahead and did this route during my last rollover.

Thanks!

-Agg97
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
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.
Advertisement