Ryebrook wrote:1) Have the refund paid directly to me.
2) Have all previously untaxed contributions and interest transferred directly into a qualified retirement plan or IRA, and have previously taxed contributions refunded to me.
3) Have part or all of my previously untaxed contributions and interest transferred into a qualified retirement plan or IRA, and the balance paid directly to me.
At first glance, I would probably take the $2,000 that is already taxed paid directly to me, and have the remainder invested in a "qualified retirement plan or IRA."
However, if I were to do this, would the remaining money ($35,000), be taxed before it was invested in the qualified retirement plan or IRA?
Could I simply set up an IRA account at Vanguard, and have the money transferred to that account without taxes taken out? If I were to do this, would I still need to begin taking distributions from it?
Ryebrook wrote:Essentially, aren't I inheriting my Mother's IRA in the form of a pension? I am curious as to whether I can have that money transferred to either my existing 401(k) or Roth IRA? Or would I need to create a new IRA that would be taxable?
I am currently not maxing out my 401(k), so there is room for me to increase my contributions there to reach that limit before going for a taxable account.
My 401(k) is through Wells Fargo, and Roth's for my wife and I are through Vanguard.
Also, the money that has already been taxed ($2,000), am I correct in assuming if I take that disbursement directly, it will not be taxed again?
I apologize for all of the questions, but I just want to make sure I handle this properly.
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