Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
In 4-2000, my husband's employer-company was sold, so we opted for "trustee-to-trustee transfer",with 401K $ being transferred to Scottrade IRA via check as follows: Scottrade FBO apacherose: IRA". Scottrade has always referred to this transaction as a "rollover", not the technically correct term "transfer"...which I didnt split-hairs-over. Now, my husband would like to start making personal contributions to this IRA--fully realizing that the actual 401K $$ will not be eligible for transfer to another employer plan if "tainted" with personal contributions...but Scottrade says personal funds cannot be added to this "rollover" IRA, & have instructed my husband that he must set up a traditional IRA with Scottrade...& then transfer the holdings from "rollover IRA" to this newly opened "traditional IRA". This is confusing, as I know when the transfer took place in 4-00, that it wasnt a ROTH assumed it was a traditional IRA...but cant seem to get this point across to Scottrade, as they adamantly refer to it as "rollover IRA". Is this fairly common among discount require a transfer of "rollover 401k-IRA" to a traditional IRA. From reading past posts, I dont recall stumbling across this type of scenario. Any feedback welcome & appreciated!!

thanks in advance--apacherose
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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.