I have a teacher retirement account to which I'm no longer contributing.(about $7,000)I want to rollover to an IRA under which, I can trade stocks. (Maybe a beat the DOW approach) Would that be a conduit or a regular contributory IRA? My state requires me to open an account first and then to do a direct "rollover" of the money. Foolish or not?

Kindly appreciated,

Greetings, Blackjackdavy, and welcome. You asked:

<<I have a teacher retirement account to which I'm no longer contributing.(about $7,000)I want to rollover to an IRA under which, I can trade stocks. (Maybe a beat the DOW approach) Would that be a conduit or a regular contributory IRA? My state requires me to open an account first and then to do a direct "rollover" of the money. Foolish or not?>>

It would be a rollover/conduit IRA at a brokerage of your choice. If you later elect to contribute money to that IRA, then it would be a contributory (or plain ole vanilla traditional) IRA. And by making that contribution, you would "taint" the 403b money making it ineligible for a transfer back into a 403b plan with a future employer. For more on IRAs, visit our IRA area at http://www.fool.com/money/allaboutiras/allaboutiras.htm. As to moving your money to a rollover IRA, around here we tend to like that due to the greater choice of investment opportunities within the IRA.

Regards..Pixy

If you are still employed by the school system, my understanding is that you cannot roll this account into an IRA, only into another 403b(7) account.

dave