401K Transfers/Rollovers
If you combine an previous 401K plan asset by transferring to a new employer 401K can the previous (old 401K assets) be separated and rolled out of the new employer 401K plan in future?
If you combine an previous 401K plan asset by transferring to a new employer 401K can the previous (old 401K assets) be separated and rolled out of the new employer 401K plan in future?
Permalink Submitted by Alan - IRA critic on Thu, 2018-07-05 22:23
Usually, but it depends on the plan provisions, not on any IRS Rule. The plan would have to provide separate accounting for the amount of the rollover and earnings generated on the rollover money from the rest of the plan.
Permalink Submitted by Joe Myers on Fri, 2018-07-06 00:07
So you simply have to check with current/new plan administrator?
Permalink Submitted by Alan - IRA critic on Fri, 2018-07-06 00:39
Yes. If the former plan has a Roth 401k balance, the new plan would also have to include a Roth portion in order to accept a Roth 401k direct rollover.