The situation is :
1. I've decided to move my ROTH 401k to an IRA
2. I already have ROTH IRA setup and instructed ROTH 401k custodian to send the check to be deposited into the ROTH IRA account
This is where things get interesting:
4. a) Now I'm being told that there is a difference between Rollover IRA and just the Roth IRA. Specifically Rollover IRA is a special account type that I need to open. It functions as a pre-tax account so if I move ROTH 401k money into it I'd have to keep records come tax time. The new custodian recommends using ROTH IRA, as then I'm moving money between similar account types.
b) I was told that since my employer's contributions are pre-tax I'd have to pay income tax on the growth. Basically the old custodian will send me a 1099 in January 2024 on just the employer's contributions.
My biggest concern is point a) above. No one can give me a straight answer as to what is the correct thing to do here. Move $$ from ROTH 401k-> ROTH IRA or ROTH 401k->rollover IRA. What are the tax implications of each? I'm concerned that come retirement time I'll be hit with a bad tax situation.
Hopefully my questions are clear and thanks to everyone in advance for their help.
