John Doe appears to like paperwork. If John had a hypothetical wife named Jane who, like me, hates paperwork, I believe this is what she would recommend:1) Keep the Traditional IRA money where it is.2) Contribute maximum allowed to 401k for immediate tax savings, assume 15% max. contribution.3) Open a Roth IRA in the new year and contribute $2000 annually.In this case, John would have $79,500 of taxable income (assuming only job income & the annuity, no other sources of income). John would still have the $20,000 tax-deferred in the Traditional IRA, would be contributing $10,500 annually into the tax-deferred 401k, and would also be contributing $2000 into the tax-benefitted Roth IRA. And, John would only have had to fill out the paperwork to open a 401k and the Roth IRA. Much less of a headache.Best of Luck,Teresa
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