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Well, it could have been worse. I signed up for my company's 403b plan without looking into it - and have now realized that my money is in crappy annuities. What I want to do is stop contributing to my 403b, and roll this money (only about $400 - that's the good news) into the Roth IRA that I'm about to start. While I'm still trying to find out if I can transfer the 403b at all, here's my dilemma. I need that money to open the Roth IRA to meet the minimum to open (a steep $1k) in the Vanguard 500 Index Fund. However, seeing as this money has to be rolled into a traditional, rollover IRA, first, would I be better served to:

1) roll the $400, plus an extra $600 needed to open a Vanguard IRA, then roll it all into a Roth (and don't I have to wait 60 days to convert from traditional to Roth?) OR...
2) just open a Roth IRA with $1000 of my own non-403b money (which will take a big bite out of my emergency funds!) and then roll the $400 into the Roth after it's already been established?

Are the tax consequences better with one of these options, or am I screwed either way? I know it's only $400, but I'm a poor 23-year old who *thought* she had been acting Foolish and has now realized the error of her ways! (And don't you worry, the money I've been contributing to my 403b will be diverted into my fabled Roth IRA when I get it started - I have learned something from this!)

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