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If the only advantage to taking the money out of 401k is the wider variety,
we'll leave it alone. I'm happy both the performance of the options
available and plan on leaving it all in an S&P Index fund.

I wasn't sure if there were some tax or dollar issues that made it
advantageous to move it to an IRA. Maybe one day she'll resume
employment with a government agency (NC state and local government has
a 401k through and can resume contributions to
the original plan.


You are obviously not 59 1/2 leaving you with the only options of staying in the 401k or rolling it out into an IRA. There is no advantage in the rollover for you, and it MIGHT be advantageous to have it in a 401k depending on law changes.

Another viable option is to roll it out into an IRA and then convert that into a Roth, possibly part each year to keep from breeching another tax bracket. The IRA to Roth transfer is at your ordinary income tax rates. ed
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