rollover of 401k to IRA and to another IRA
Doctor had 401k plan for him and his staff…stopped funding it a few years ago. called the company and they had the Doctor and staff do a rollover/transfer from the 401k plan to an IRA for each one.
Now they all want out of the company.
Is it okay to rollover/transfer out to a new fund company or does the 1 year rollover come into effect?
or
since it was a rollover from 401k to individual IRA’s, it will be considered a transfer to another IRA and not a rollover?
Thank you,
Douglas
Permalink Submitted by Alan - IRA critic on Thu, 2014-01-23 21:00
The 401k to IRA rollover does not count toward the one rollover rule. The IRA owners then could either take an IRA distribution and roll it over to a new custodian or do a direct trustee transfer to the new custodian. They do not have to do the transfer, but if they do they still have an indirect rollover they can use in the next 12 months if they want to. But if they do the indirect rollover now, they cannot do another one from the new IRA custodian for another 12 months.