Traditional IRA (Not Rollover) into a 401k

Submitted by Todd Martin on Sat, 2022-07-23 00:07

Have a client that rolled money out of her 401k with her previous employer. The receiving banking institution set up a Traditional IRA, not a Rollover IRA, to accept those proceeds. Five years later, she now would like to rollover her IRA into her company sponsored 401k plan with her new employer. Can she do this since the account is labeled a “Traditional IRA” and not a “Rollover IRA”?

Thank you.



Submitted by Dan Zaehring on Sat, 2022-07-23 00:45

The fact that the TIRA is not labeled as a rollover does not change its character.  So long as the funds are totally attributable to her previous 401(k) and she didn’t add any IRA contributions to it, she is able to roll the account into an employer 401(k).



Submitted by William Tuttle on Sat, 2022-07-23 03:02

  • The tax code, IRS regulations and guidance did change several years ago. A 401k now; may but is not required to accept rollovers from any traditional IRA provided the participant certifies the rollover only contains pre-tax assets.
  • While most 401k plans will now accept such traditional IRA rollovers. Many will still only accept rollovers from pure Rollover IRAs. Some 401k plans will not accept any IRA rollovers.
  • The client should verify with their employer or 401k plan administrator what their policies are for IRA rollovers.
  • salishseas adviser: This is at least the third time you have posted incomplete, inaccurate and/or downright false information. Your knowledge is clearly not at the level of Alan or DMX. You should refrain from future posts of misinformation.


Submitted by Dan Zaehring on Sat, 2022-07-23 03:35

Since the question was focused on the labeling of the account, that was the focus of the answer. And yes there are other factors which will need to be met before a rollover can be completed.  Thank you for adding at least some of them.



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