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The experts will be along in a short while, but let me observe this -- you can't roll over your 401k to a Roth IRA. Clearly, IRS would never stand for that, because it would mean that they NEVER get to tax that money; not when you put it in the 401k and not when you take it out of the Roth IRA. A loophole that big would bring Congress down in a minute.

So, you would have to roll over the 401k to a traditional IRA (an untaxed operation) and then, all at once or gradually over the years, convert that IRA to a ROTH IRA and pay the income taxes accordingly.

I'd think you're better off with the money in an IRA, since you have so much more flexibility in managing the money and can change custodians of the IRA with no tax liability. In a 401k you're stuck with whatever management, good or bad, that your employer picks for the retirement stash.

Chips, cheerfully retired for seven years without yet making any IRA distributions
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