Message Font: Serif | Sans-Serif
No. of Recommendations: 1
After reading some posts on rolling over a 401(k) to an IRA I think some people may not be aware of a change in the rules beginning in 2002. It is no longer necessary to keep 401(k) funds in a conduit IRA in order to roll them over to a new employer's plan. Begining in 2002, any IRA can be rolled into an employer plan so long as (1) the plan allows such contributions and (2) only the portion of the IRA that would otherwise be taxable is rolled over.

That being said taxpayers born before 1/1/36 may continue to benefit from the use of conduit IRAs in order to retain eligibility for 10 year averaging and capital gain treatment of distributions.

Just thought some folks might want to know.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.