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teletran: "Actually, you can do a direct rollover from your employer's 401k to a Roth IRA account."

This is not correct. As Crosenfield points out, you can do a trustee-to-trustee transfer directly to a traditional IRA, NOT a Roth IRA.

"You would need to contact the benefits department and the IRA company for the necessary rollover forms."


"As long as you do a direct rollover and the money therefore never touches your hands, there would be no tax consequences."

Once direct rollover is correctly understood, agreed. As Crosenfield points out, converting a traditional IRA to a Roth IRA will have tax consequences, although it can be done without penalty.

Regards, JAFO
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