Comments on: Is there any advantage to rolling my 401k into a rollover IRA instead of my existing traditional IRA? http://www.secretfinance.com/blog/is-there-any-advantage-to-rolling-my-401k-into-a-rollover-ira-instead-of-my-existing-traditional-ira/ Thu, 17 May 2012 20:54:15 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Steve R http://www.secretfinance.com/blog/is-there-any-advantage-to-rolling-my-401k-into-a-rollover-ira-instead-of-my-existing-traditional-ira/comment-page-1/#comment-1011 Steve R Fri, 13 Feb 2009 09:11:26 +0000 http://www.secretfinance.com/blog/is-there-any-advantage-to-rolling-my-401k-into-a-rollover-ira-instead-of-my-existing-traditional-ira/#comment-1011 The traditional IRA was funded with after-tax money. So, when you withdraw at retirement, you pay taxes on only the added value of the investment, not the money you initially put in. You create a rollover IRA because this will have your 401K money which is pre-tax money. When you withdraw, you pay income taxes on all of it. I'm going through this now, so I've done all the research on it. The traditional IRA was funded with after-tax money. So, when you withdraw at retirement, you pay taxes on only the added value of the investment, not the money you initially put in.
You create a rollover IRA because this will have your 401K money which is pre-tax money. When you withdraw, you pay income taxes on all of it.

I’m going through this now, so I’ve done all the research on it.

]]> By: VaTreasures http://www.secretfinance.com/blog/is-there-any-advantage-to-rolling-my-401k-into-a-rollover-ira-instead-of-my-existing-traditional-ira/comment-page-1/#comment-1010 VaTreasures Wed, 11 Feb 2009 00:43:50 +0000 http://www.secretfinance.com/blog/is-there-any-advantage-to-rolling-my-401k-into-a-rollover-ira-instead-of-my-existing-traditional-ira/#comment-1010 The only thing you want to treat differently is any company stock from your 401k. Other than that it really does not matter where you put it and there is a lot to be said for having it all in one place. The only thing you want to treat differently is any company stock from your 401k. Other than that it really does not matter where you put it and there is a lot to be said for having it all in one place.

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