I have problems keeping the various tax-free and tax-deferred options straight. I have a 401(k) that is relatively small and I think I can do better managing it on my own. Which flavor (if either) of IRA can I roll this over to without having to pay taxes? Thanks.
I assume you are no longer employed by the firm running the 401k plan. You should be able to roll over to a Traditional IRA with no tax consequence in the year of rollover. The money in the 401(k) was contributed before-tax and retains its tax-deferred status in the IRA.
On a side note, if you are married in a community property state, you may need your spouse's signature to complete the rollover.
Yep no longer.
Not a community property state. Thanks for the information. Kurt
In addition to what Mark posted, please be aware that if your plan contains your former employer's stock, then any tax benefit for NUA (net unrealized appreciation) that you may still be eligible for will be lost when rolled over into an IRA.
See the link below if you want to know about NUA.
Thanks, but it doesn't.
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