No. of Recommendations: 0
I think the information you were given is correct. Of course, you can pay the penalties and open a Roth ($2000 max per year per person ignoring the income limitations).

But that's not what I did. I arranged a direct rollover into a self-directed IRA. Since you have $5K, you night consider an index fund in the IRA (Vanguard, etc.). I think they waive the custodial fee if your account is $5K.

We are funding our Roth IRAs separately, so together there are 3 IRA accounts. They have to be seperate, but they CAN be held at the same company.

Print the post  


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.
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.