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|Subject: Re: IRA Rollover Question||Date: 7/30/2001 4:26 PM|
|Author: Charlie48K||Number: 31062 of 74759|
If this is the case, then the $6,000 profit sharing account is considered in the same class as a 401K?
While I do believe if he is able that he can move this money to an IRA, wouldn't it be better to open a Rollover IRA so not to mix pre-tax with after-tax money? If he does this, doesn't this prevent him from ever rolling this money into a 401K if he so decides down the road?
I made the assumption that it was a qualified pension plan under 401(a) rules. I shouldn't have made an assumption. I should have told him to check.
Effective January 1 with the new tax laws, everything is fully interchangeable. You no longer have to keep things separate. You can even roll and IRA into a 457.
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