UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next
Author: gogreengo Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Re: 401k distribution Date: 1/8/2004 12:23 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
You do need to put it into a traditional (or "rollover") IRA to start with. Then you can convert ALL or PART of it into a Roth pretty much right away. Depending on who you get your IRA from, you can indicate on your rollover/traditional IRA paperwork that you want all or part of it to be converted into a Roth. Or, you can just arrange to call them when you want to make the conversion.

I went with Fidelity for my 401k-into-an-IRA thing. They have discounts if you have a certain amount invested with them as a household. And there are lots of mutual funds, both from Fidelity and from "partners" like T-Rowe Price and Oakmark, to choose from. You can also choose to put individual stocks or bonds in your IRA, as well. Vanguard would be another excellent choice.

I chose to convert just half of my money into a Roth for 2003, and then will convert the rest in 2004, so I don't have to pay so much in taxes in either year. You could maybe spread yours out over several years, if you want.

Good luck!
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement