From: hvanclee@nyx.net (Henry van Cleef)
Newsgroups: misc.invest.financial-plan
Subject: Re: Taxes on 401k into Rollover IRA
Date: Sat, 10 Jan 2004 05:31:53 CST
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In article <5CnLb.9102$zf.936@okepread05>,
Brent D. Gardner, ChFC  wrote:
>"Rich Carreiro"  wrote in message
>news:m3lloigug2.fsf@animato.home.lan...
>> It's a meaningless question because the taxable portions of IRA
>> and 401(k) withdrawals are taxed identically.  And the same
>> early withdrawal[*] and mandatory minimum distribution rules
>> apply to both as well.
>>
>> [*] except for age 55+ penalty waiver rule when taking money
>>     from the 401(k) plan of the emplyer you just left when you
>>     are 55+.
>
>Incorrect. There are no meaningless questions, just meaningless answers. I
>answered the question. You didn't.
>
>There are taxation differences, even today, and once you mix, you forfeit
>any tax advantages, because the Service defaults to the lowest common
>denominator on taxation (Read: Highest tax).
>
Brett, please explain to me in terms that a retiree can understand
just what possible tax benefits I might have forfeited when I rolled
my last 401K into a rollover IRA that had already been funded with a
lot of other rollovers.  Note that I left this job at age 67.

Hank