Greetings,Hope this is the right board for this type of stuff. I opened a rollover IRA using the funds from a 403(b) plan when I left job #1. I've now left job #2 and have some 401(k) funds to deal with. Can they be transferred to my existing rollover IRA or do I have to open another one? I don't think it matters but I also have an existing Roth IRA.It's already a pain managing funds in several different accounts. Hopefully I don't need to add another one.Thanks,Wot
Can they be transferred to my existing rollover IRA or do I have to open another one? You can do the rollover to your existing IRA. No additional account is needed.--Peter
You can do the rollover to your existing IRA. No additional account is needed.Thanks!
Peter,Does it have to be to a rollover IRA only? I need to move funds out of a 401k plan and we already have a traditional IRA opened. Years ago, we did a transfer to a rollover IRA and then merged both accounts (for some reason the brokerage house didn't transfer all the money, there is <$10 there still). Do I have to do the same thing this time around?- zol
Does it have to be to a rollover IRA only? No. Several years ago there was some incentive to keep rollover 401k money in a separate IRA from your traditional IRA contributions. You could rollover 401k money to a separate IRA, then take that IRA and roll it over into a 401k at a new employer. That restriction has now been lifted, and any IRA money can be rolled over into a 401k plan, as long as the plan allows for it.You can use any existing traditional (not Roth - yet!) IRA as the destination of a 401k rollover.--Peter
Thanks Peter! Spouse has three separate 401k accounts that need to be consolidated into one.- zol
I always recommend rolling an existing 401k into an IRA.Lower costs.Better investment options.More post mortem flexiblity.FWIWbuzman
Fyi,When you roll the IRA out of one provider to another you may get hit with a processing fee of something like $50 dollars.More post mortem flexiblity.Translation: Currently if you are not married, or both you and your spouse get killed in a car crash, then your kids(or whoever) gets zinged big-time with taxes on the inherited 401k, a lot more than with an rolled over IRA. Apparently this is improving somewhat with the recent tax law changes but I don't know the details.Important Note: If the 401K has company stock in it you could be in a different ball game and the rollovers can be completely different tax wise. You need to know the tax consequences on moving any company stock before you do anything.Greg
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