Quote:
Originally Posted by Homeslice
Why cash it out, unless you have some high-interest debt to pay off?
You should roll it into a Traditional IRA, which wouldn't have any penalty, or you could check to see whether you're allowed to roll it into a Roth IRA, after paying taxes on it of course.
Basically a Roth IRA is for someone is willing to pay taxes on it now, because they think they'll be in a higher tax bracket when they retire.
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You can't "roll" into a Roth.
Either way it has to go to a Traditional IRA. Once it is there, she can convert it to a Roth.
If you only had $500 in there, it might be worth the $100 hit to not have to deal with the paperwork required to set up an IRA.
