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Greetings, Meerbott, and welcome. You asked:

<<When you directly rollover a 401k into a rollover IRA, is it true that there are no tax implications/penalties to the individual.>>

Yes, that's correct.

<<Also, when you set up a rollover IRA and make your own trades via a discount/online broker, how are the commissions paid for? Are you allowed to use some of the balance in the IRA without any penalties, or do you have to set up an additional account to use for trading commissions?>>

Trading fees for IRA transactions must be paid for with money inside the IRA. Therefore, you must use the balance that's inside the IRA.

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