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Greetings, Eph90Tuck94, and welcome. You asked:

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?

Although a qualified plan and a type of defined contribution plan, it's my understanding that a 403b cannot accept rollovers from anything else but another 403b plan, and even then only if the plan documents allow it. Best check with your plan administrator to be sure about that. If that's true, IMHO for the little in taxes you would owe and as someone else suggested, a Roth conversion is probably the route to go. You will first have to transfer the money to a traditional IRA and once it's there, transfer it again to the Roth. That way you'll escape any 10% penalty, but not the ordinary taxes due.

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