No. of Recommendations: 0
> What's a Rollover IRA mean in this case? and how is it different from
> a traditional IRA? (I've had some trouble searching for this answer on
> my own, since I always find info on roth vs. traditional and I already
> know that distinction.)


A "rollover" is a traditional IRA funded with 401(k) funds.

Be sure to do a "trustee to trustee" transfer. If you take posession of the money you will create taxable income which could have been avoided. Ask the "receiving" organization for help in arranging this.

When I did this after my retirement the company plan administrator mailed a check to me for the value of my 401(k) payable "For the benefit of ..." not payable to me as an individual. I sent the check to the no load fund group I wanted to use as the initial deposit in my account.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement