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Author: Watty56 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75878  
Subject: Re: Rollover IRAs Date: 8/25/2006 11:32 AM
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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
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