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stewartjm writes (in part):

Hopefully I could move that money into my Rollover IRA since I would hate to have to open yet another account.

I reply:

That shouldn't be a problem, although I understand that there are still some custodians out there who think that rollover IRAs must be kept separate from non-rollover money. That hasn't been true for some years. I believe it's still true, though, that if you do mix the money (the recharacterization we're discussing would be such a mix), you can no longer funnel the rollover money into a new 401(k) plan. That's not a problem for most people, but if it's still true, it's something you should know. --Bob
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