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Author: x4a54 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75838  
Subject: Re: 401K Rollover mullings Date: 6/14/1999 1:39 AM
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>>>And now for the big what if. If I were to take all previous 401k plans and start an IRA (say
through etrade), would I be liable for taxes and penalties? Am I only allowed to contribute 2k
anually? Can I borrow from that account for a home loan.

The home loan is probably the highest priority right now. I would like to create a new ira that I
have control over, put as much into it anually (say 10% of salary), take advantage of company
contributions by enrolling into their 401k fund, and most importantly be able to borrow from
my new ira that (the one I set up)to pay for a down payment on a home.
<<<<<<<

would be nice......

you CAN consolidate all your (reg., *not* Roth) IRAs
and 401(k)'s into one IRA ...

you may ONLY contrib $2k to ALL (not each) IRAs in any
year --but rollovers aren't contributions. and that's
the max. depending on income it can be less. depending
on income and 401K at next job, the 2K might not be
deductible.

currently there's a 10K limit on contribs to 401K.

you may NOT borrow from IRA, only 401k and not all
401K's, and for someone who changes jobs frequently,
it's highly UN-recommended to borrow from the 401K.


hope this helps....


jp
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