Re: 401k and IRA question.

On Mar 14, 5:25 am, marckas...@[EMAIL PROTECTED]
 wrote:
> Thanks for the replies, its helpful!
>
> I am a little confused about when the term "rollover" is used in the
> context of an IRA.  The term seems to be used as verb and a noun.  For
> instance, if money is rolled over into a traditional IRA account,
> would this account now be considered a "rollover IRA account"?
YES

>  Or
> would the account still be considered an IRA account that tax deferred
> money (from a 401k) got "rolled over" into it?

YES, but first phrasing is more common way to communicate where IRA
came from.

> Also PeterL mentioned about rolling over a 401k into a rollover IRA in
> this thread thru Fidelity, which I also have mine in.  But he never
> mentioned that if this was a direct
> transfer.  If it wasn't a direct transfer what risk or loss if any
> resulted?

The question "what risk or loss resulted" confuses me.

The 401k account balance gets frozen the day the rollover application
arrives.  That amount is then transferred to Fidelity.  Once at
Fidelity it will be invested the way you instructed fidelity to
invest.

The risks taken will be a function of the investments chosen.

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