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Subject:  Re: Rollover/Transfer?? Date:  9/6/1999  9:57 PM
Author:  zgriner Number:  13754 of 101446

I thought that I read somewhere that once you do a rollover you have to wait at least one full year to roll it over again, but you can transfer as many times as you'd like.
AFAIK, a 'rollover' actually pertains to 401k/IRA/pension money that was given to you, held for up to 60 days, then 'rolled over' into an IRA. This can only be done once every 12 months. If you had your money moved from your 401k directly to your IRA, by your custodians, this is a 'transfer', and there is no limit on transfers.

Since I have no intentions of rolling it into a new 401K, is it ok to contribute to this account? Or is it better to open a separate IRA account?
Yes and maybe. The laws have been clarified regarding contributing to rollover IRAs and there is no problem if you are not going to move the money into another 401k. OTOH, I read somewhere that you should keep your deductible and non-deductible IRA accounts separate. The idea is that when you start withdrawing, you can choose which account to draw from, affecting your taxes. (Is this correct, Pixy?) Since your rollover IRA would be considered a deductible IRA, you should only contribute to it if your entire contribution is deductible. If what I just typed is wrong, it makes no difference.

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