"Internet User" <notlisted[at]notlisted.com> wrote:

- quote -

Yes. Participation in a 401K plan only affects the
deductibility of new contributions to an IRA, not rollovers
from 401K to IRA.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA

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I have a 401K at my present employer. I will be leaving
this employer for another one in a couple of months. My new
employer also has a 401K plan. I realize that I can
rollover my 401K to the new employer's one. However, can I
also do a tax free rollover into a IRA that I can manage
myself with my online brokerage account?

I figure that since I can't normally make deductible IRA
contributions this would be a good way for me to put my
money in one so I can manage it myself. I will then
participate in my new employer's 401K plan and start with a
$0 balance in my account and in essence start over. Is this
doable with the current tax laws?

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