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Author: pheinemann Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76111  
Subject: 401k to independent and back? Date: 9/20/2000 11:13 AM
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Greetings,

I am about to become self-employed, and have an existing 401k. Due to the benefits of compounding, I'm interested in moving my 401k funds to an self-employed plan of some sort. Do you know if funds can be moved out of a self-employed plan back to a 401k should I return to employee status in the future?

Thanks much...

...pgh
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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 24938 of 76111
Subject: Re: 401k to independent and back? Date: 9/20/2000 3:26 PM
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I am about to become self-employed, and have an existing 401k. Due to the benefits of compounding, I'm interested in moving my 401k funds to an self-employed plan of some sort. Do you know if funds can be moved out of a self-employed plan back to a 401k should I return to employee status in the future?

As a part of your separation process, you should receive information about your options for the 401(k). One will be to roll it into a traditional IRA, a/k/a a "conduit" IRA. If you don't taint the conduit IRA with contributions, you can roll it into a future employer's plan if that employer allows.

Details are in IRS Publication 590.

TMF ExRO
Phil Marti

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Author: pheinemann Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 24946 of 76111
Subject: Re: 401k to independent and back? Date: 9/20/2000 8:30 PM
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Thanks...rather than a conduit IRA, could it be rolled into, say, a Keogh or SEP, then either of those rolled back into a 401k?

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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 24948 of 76111
Subject: Re: 401k to independent and back? Date: 9/20/2000 9:36 PM
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rather than a conduit IRA, could it be rolled into, say, a Keogh or SEP, then either of those rolled back into a 401k?

I'm not really sure, but the distinction is irrelevant. Once you roll it into an IRA, you can make just about any kind of investment you want. Leaving it in its own account doesn't limit your choices, and still guarantees that you'll be able to roll it into a 401(k) if that's what you want to do.

TMF ExRO
Phil Marti

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