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bburlew -

Both have valid points! First step is to rollover the 401k money to a traditional IRA. Then you can "convert" funds into a Roth IRA over time. This way you don't recognize the entire sum as income in one year (and possibly boost you income tax bracket), but spread the conversion over several years to minimize the tax bite.

Sure, this is more work, but maybe it's worth the effort. Because you're under 30, the Roth can be a powerful tool to grow money "tax-free" after age 59 1/2. As for the "guru" both the tradition & Roth accounts can be invested similarly to produce the same total gain - however the traditional IRA will be taxed as ordinary income, while the Roth will not be taxed at all! Doesn't that make sense?

Good luck & best wishes, PP
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