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I'm a recent merger survivor with money in a soon to be terminated 401(k)Plan. The new and "improved" 401(k)plan investment selections are more new than improved so rolling it in there wouldn't be very foolish. My initial plan is to roll it into an IRA with my on-line broker and 2-2-3-4-5, presto, I'm a Fool!(foolish four)End of story, right? Well, the account is relatively small, 15k, and I'm relatively young, so howz about setting up a roth account with the online service, rolling half into the account before December 31st, roll the other half in there after December 31st and line up the foolish four immediately. I'd spread the taxes over two tax seasons, but get the money into a foolish four roth with no future tax consequences. Of course, all future contributions to Mr. Roth wouldn't be tax deductible, but so what, right? Pay taxes now or pay taxes later?!?! What'da ya think? What am I missing here?
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In somes cases, you may not be offered the chance to move your 401K to an IRA. Companies sometimes decide for you and automatically move to the new 401K. But if you have the option, your plan seems to be well thought out. Seems reasonable. The Roth conversion presumes that your tax bracket is lower now that it will be when you get to retirement years.
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Greetings, Bstanford, and welcome. You wrote:

<<I'm a recent merger survivor with money in a soon to be terminated 401(k)Plan. The new and "improved" 401(k)plan investment selections are more new than improved so rolling it in there wouldn't be very foolish. My initial plan is to roll it into an IRA with my on-line broker and 2-2-3-4-5, presto, I'm a Fool!(foolish four)End of story, right? Well, the account is relatively small, 15k, and I'm relatively young, so howz about setting up a roth account with the online service, rolling half into the account before December 31st, roll the other half in there after December 31st and line up the foolish four immediately. I'd spread the taxes over two tax seasons, but get the money into a foolish four roth with no future tax consequences. Of course, all future contributions to Mr. Roth wouldn't be tax deductible, but so what, right? Pay taxes now or pay taxes later?!?! What'da ya think? What am I missing here?>>

You cannot transfer monies from a 401k plan to a Roth. You must first transfer the proceeds to a traditional IRA. Once in the traditional IRA, then you do another transfer to a Roth. Whether you should do so or not depends on a number of factors such as your tax rate today versus that in retirement, how you will pay the income tax due, how long the money will stay in the Roth, and assorted estate planning issues. For a discussion of these issues, see my analsis in post number 1567 on this board at http://boards.fool.com/Message.asp?id=1040013000441002&sort=postdate. You need to do some analysis first before you take that step.

Regards..Pixy
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Thanks Pixy! I appreciate your prompt response. Since I have to go to the IRA that'll get the firm off my back and give me some to research further.
Thanks
Bryan
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Good advice given by others already. Just wanted to point out that if your going to use the Foolish Four method that 2,2,3,4,5 is no longer recommended, that is the old ff. The new ff is also known as RP4 and there is no doubling up of any stocks. Good luck.
Bryan
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