No. of Recommendations: 0
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.

Phil Marti
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.