Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121114  
Subject: Re: 401 k direct rollover vs. transfer to IRA Date: 10/14/2002 3:48 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
If you are happy with the mutual fund family that you are currently invested in then a mutual fund account with that company maybe a good choice. Brokers charge to buy and sell mutual funds but mutual fund companies frequently do not charge transaction fees for their own funds.

A trustee to trustee rollover is best. You never take control of the funds and therefore do not have to worry about the limits for the transfer.

When rolling over an account the sending administrator should forward dividends that are paid after the initial transfer. This resulted in a $.02 check from Fidelity fortunately with a postage paid envelope. I had considered allocating 10% to each of 10 choices to see what would happen.

If you have funds other than from the 401K to pay the taxes for a ROTH conversion then it maybe a good choice. If you have to take a distribution from the IRA to pay taxes and penalties then the conversion is likely not a good choice.

Converting from a 401K to a ROTH is a two step process. It is necessary to roll the 401K over to an regular IRA and then it can be converted to a ROTH.

Debra

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Post of the Day:
Berkshire Hathaway

Starting a Small Business
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 "#1 Media Company to Work For" (BusinessInsider 2011)! 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