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Earlier I wrote:

So (finally) here is the question: Do I have to open a rollover IRA to receive the money from my 401k, or can I rollover into a "Traditional IRA"? And if I have to go into a Rollover IRA, can I decide to make those little $2-3k/yr contributions to that account?

Well, to partially answer my own question, the IRS (Pub 590) says that I don't get to make deductible contributions to an IRA in the first place and in general I don't get to contribute to a Roth IRA either, so that pretty much makes the original question a moot point... just roll the old 401k into a Rollover account and leave it there, not adding to it.

While I could still make non-deductible contributions the benefit of that isn't that great, and is hard to measure thanks to tax laws (i.e. I believe IRA dispersions are income not cap-gains, so in theory if I don't trade that often, then paying 18-20% cap-gains is probably better than investing non-deductible contributions tax-deferred and then paying income tax in retirement (assuming that it is fairly likely that I will still have sizable income in retirement, which currently looks like a pretty safe bet).

Like all retirement planning there are so many variables that it's highly depending on an individuals situtation... tax laws are subject to change, etc., etc. What may look okay today may look bad tomorrow.

...Jason
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