I found the following from another newsgroup. Guess a Rollover IRA is an option for me and will allow me to transfer to 401K in the future./////////////////////////////////The issue is usually that if the 401K is distributed directly to you,then taxesare withheld from the disbursement and there is usually no way to getthat back until you file your taxes for the year. You can still set uparollover IRA, but to fully roll over the full amount, you have to comeupwith the amount that was withheld (but you'll get it back with your taxrefund next year). If you just rollover the amount that was distributedtoyou, the amount withheld and sent to the IRS by your previous employeris considered a disbursement to you and you will owe taxes and penaltyonat least that much (unfair as it may seem).It is thus usually better to arrange that the 401k distribution be sentdirectlyto an IRA custodian, in which case no withholding takes place. But itis,indeed, probably too late for that now.-bret
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