Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0

So, I hope to be 5-10 years from an early retirement. I will be rolling a significant 401(k) into an IRA shortly. If my total retirement savings amounted to $100, then this IRA would amount to $21 of that.

I already have nine accounts at a discount brokerage. One is taxable, two are Roths (I am married), one is inherited and five are various sizes of traditional IRA.

Does it matter where I roll this new 401(k) for tax planning purposes? I have smaller and larger IRAs now, and recall something about being able to pick and choose how to manage IRA withdrawals. Still, the sheer number of accounts creates a bit of complexity.

I generally understand tax planning, but do not fully understand the implications here.

Should there not be a material tax benefit, my intent is to roll this into an existing IRA to reduce the number of accounts I hold.

If it matters, this decision is more driven by an interest in mitigating exposure to the S&P 500 through the 401(k) where I dollar cost average into that index than tax issues.


Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.