No. of Recommendations: 0
These are probably simple questions but I haven't been able to locate a quick answer so I am seeking aid from more experienced Fools. My wife and I recently relocated and we are looking to roll over our company 401k's into an IRA account. We each have two accounts at two different former employers. My questions are:
1) Can we roll all four of these 401k accounts into one "joint" IRA or must we each roll over our accounts into our own separate IRA's (e.g. one in my name and one in her name)? 2) If we must keep separate IRAs, is it possible for an individual to roll over 401k accounts from two previous employers into one IRA account?
Thanks for your help!
Drive455
Print the post Back To Top
No. of Recommendations: 0
Greetings, Drive455, and welcome. You asked:

<<These are probably simple questions but I haven't been able to locate a quick answer so I am seeking aid from more experienced Fools. My wife and I recently relocated and we are looking to roll over our company 401k's into an IRA account. We each have two accounts at two different former employers. My questions are:
1) Can we roll all four of these 401k accounts into one "joint" IRA or must we each roll over our accounts into our own separate IRA's (e.g. one in my name and one in her name)?>>


The key word in "Individual Retirement Account" is the first one. An IRA may not be owned jointly with another person. Thus, you and your spouse may transfer your 401k plan monies to your own accounts only.

<< 2) If we must keep separate IRAs, is it possible for an individual to roll over 401k accounts from two previous employers into one IRA account?>>

Yes, it is possible.

Regards..Pixy
Print the post Back To Top
No. of Recommendations: 0
Drive455 writes (in part):

If we must keep separate IRAs, is it possible for an individual to roll over 401k accounts from two previous employers into one IRA account?

I reply:

As TMFPixy writes, it is possible, but I believe that the funds may then be considered "commingled" so that you will lose the ability to later transfer them to a qualified retirement plan. --Bob
Print the post Back To Top
No. of Recommendations: 0
Bob writes:

<<As TMFPixy writes, it is possible, but I believe that the funds may then be considered "commingled" so that you will lose the ability to later transfer them to a qualified retirement plan,>>

No, that's not true. If the source of the contributions is from an employer-provided qualified retirement plan from one or more employers, then co-mingling does not occur. While you cannot mix 403b plan money with 401k, you can mix one or more deposits coming from multiple 401k plans and/or defined benefit plans. All of that money retains its eligibility for a subsequent transfer to a new employer's plan that accepts such transfers.

Regards..Pixy
Print the post Back To Top
No. of Recommendations: 0
How about rolloving over funds from the following into a rollover IRA:
1. 401k
2. Keogh:Money-purchase
3. Keogh:Profit-sharing

I have some money in all 3 of the above.
Is it considered co-mingling?
Are there any disadvantages?
Thanks,
Aravindan
Print the post Back To Top
No. of Recommendations: 0
Aravindan asks:

<<How about rolloving over funds from the following into a rollover IRA:
1. 401k
2. Keogh:Money-purchase
3. Keogh:Profit-sharing

I have some money in all 3 of the above.
Is it considered co-mingling?
Are there any disadvantages?>>


Yes, it is considered comingling of the monies from the two plans. While you can put Keogh and 401k money into the same IRA, that means you cannot later move that money to another 401k or Keogh plan.

Regards..Pixy
Print the post Back To Top
No. of Recommendations: 0
Ravi asked:

<<How about rolloving over funds from the following into a rollover IRA:
1. 401k
2. Keogh:Money-purchase
3. Keogh:Profit-sharing

I have some money in all 3 of the above.
Is it considered co-mingling?>>


Pixy replied:

<<Yes, it is considered comingling of the monies from the two plans. While you can put Keogh and 401k money into the same IRA, that means you cannot later move that money to another 401k or Keogh plan.>>

And guess what? Pixy was out to lunch on that one, and apologizes to the world. I was, for whatever reason, equating the Keogh with a SEP or SIMPLE IRA.

A Keogh, though, is a qualified plan. I know that, and knew it when I replied, too. Therefore, because qualified plan money may be transferred to another qualified plan or to an IRA, the 401k money and the Keogh money may be combined without affecting the eligibility of the combined money from later being transferred to a new employer's qualified plan (assuming the new plan accepts money from a former employer's qualified plan).

Sorry about that.


Regards..Pixy



Regards..Pixy
Print the post Back To Top