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Subject:  Re: 401(k)rollover vs. IRA transfer Date:  9/3/1997  11:07 AM
Author:  TMFPixy Number:  278 of 90120

Yo, B2H.

<<I have chosen e.Schwab for my broker. They (and possibly all other brokers) have two options for your IRA account: Contributory IRA and Rollover IRA. I have an old 401(k) and I am currently contributing to an IRA (mutual fund) for the 1997 plan year.

I would like to place the entire amount of both the 401(k) and my 1997 plan year contributions into one single account. I know about the rules on co-mingling (sp.) Contributory IRA funds with Rollover IRA funds IF you want to someday place the rollover funds in another 401(k). This will not be the case for me.

Any advice/consequences from those who have gone through this type of situation before? I think it can be done, but what is the procedure? And for those with e.Schwab, what can I expect in terms of rollover & transfer time/initial assistance/etc.>>

Nothing complicated here. You understand the difference between the rollover and regular IRA, and you have no objections to "tainting" the rollover of the 401k monies. Accordingly, all you have to do is instruct the plan custodian to transfer the monies to the IRA you set up with eSchwab. You can make this year's deposit at any time -- before, after, or during the transfer of the 401k monies. The transfer can take up to 60 days depending on the speed of your old custodian. It can take longer if the plan allows changes only during specified times during the year, and many do. It all depends on the plan. You'll need to check with the plan custodian about that.

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