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Eph90Tuck94 writes:

I have a few hundred dollars in a 401(k) where I used to work 4 years ago. I'd like to move this money either into the 403(b) I have now or into a traditional IRA that I'd have to set up. I've already started and fully funded a Roth IRA for this year. My question is whether or not it's a good idea to be blending money from two different retirement accounts. Is this going to create a tax and paperwork nightmare down the road? Should I just roll the few hundred bucks into a regular IRA in January to keep the money separate?

I reply:

Have you considered transferring the 401(k) to a traditional IRA and then converting the traditional IRA to a Roth? Even though you've fully funded your Roth for this year, you're permitted to do this (provided your income doesn't exceed $100,000). You'll have to pay taxes on the amount of the conversion, of course, but I don't imagine the tax on a few hundred dollars will break you. Good luck. --Bob
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