Quit job, Rollover 401K to IRA, Get Rehired
Is it possible to quit your job, Rollover your 401K to an IRA and then get rehired? Are there rules prohibiting this action?
Is it possible to quit your job, Rollover your 401K to an IRA and then get rehired? Are there rules prohibiting this action?
Permalink Submitted by Alan Spross on Wed, 2009-10-07 22:28
There are no rules prohibiting this, but if the employer knows and intends that the employee will be rehired in order to circumvent a plan limitation on in service distributions, then there could be plan compliance problems.
Otherwise, it is fairly commonplace that an employee leaves and does a rollover. After a period of time the employee can be rehired. Plan provisions will address whether an IRA rollover can be rolled back into the plan at the time of re hire.
Permalink Submitted by steve harper on Wed, 2009-10-07 22:32
Thanks Alan! As always I appreciate your expertise and insight.