Greetings, Derobj, and welcome. You wrote:<<I'm 23, I've got $5000 from a 401k at my old company, I'm trying to decide if I should roll it into a self directed IRA. My question is should I put it into a traditional or a Roth? I've read the info on both and I guess I need it explained to me in more laymen terms, or rather with some examples. Please help me out if you can. >>To get the money to a Roth, you would first have to transfer it to a traditional IRA. Once there, then you may further transfer the sum to a Roth. Whether you should or not depends on your tax rate today versus that in retirement, how long the money can stay in the Roth, how you will pay the income taxes due on the conversion, and the size of coupled with your desires for your estate. To see some examples and issues involved in making this decision, see my analysis in post 1567 at http://boards.fool.com/Message.asp?id=1040013000441002&sort=postdate. Then run a similar analysis for yourself.Regards..Pixy
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