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I think I remember that it would be best to move it to a Roth IRA rather than a traditional, because I don't qualify for IRA tax exemptions.

A rollover has nothing at all to do with contributions, so whether or not you can deduct contributions to a Traditional IRA has absolutely nothing to do with rolling a 401(k) to an IRA.

In fact, if you want to roll the 401(k) money into a Roth IRA, it has to first land in a "rollover IRA" (a traditional IRA funded by the 401(k)) before it can then be converted to Roth IRA. (The conversion would be a taxable event, and there is an income cap beyond which you are not allowed to convert to Roth.)

There are tradeoffs to rolling the 401(k) to an IRA. An IRA opens up a very wide field of investment possibilities, so one could often find investments that better meet one's investment plan (e.g., funds with lower expenses, or invest in part of the market that your 401(k) might shun, or individual stocks). An IRA allows up to $10,000 to be taken out for "first time home purchase" acquisition costs (but read up on what "first time home purchase" means in this context--the "first time" is a misnomer) without penalty (though one would pay ordinary income tax). On the other hand, a 401(k) has ERISA protection (protected from creditors, but not from divorce), but IRA protection from creditors varies between states. Also, a few 401(k) plans offer investment options that might not be available elsewhere, e.g., I have heard of Admiral shares of Vanguard funds being available in some 401(k) plans even if the individual investor has far less than the $250,000 balance. Some investments might not have quite the equivalent available elsewhere (e.g., TIAA-CREF's Real Estate investment account, which outright purchases different types of commercial buildings and rent space in them, as opposed to many REITs that are usually leveraged).

A very common reason for rolling a 401(k) into an IRA is in cases where the 401(k) has high expenses, lower-expense options may be readily available from the appropriate IRA custodian. But one would have to find out if indeed one's 401(k) is "expensive" and then find an inexpensive IRA custodian (e.g., a mutual fund family well known for low expenses, or a discount broker).
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