401(k) to 401(k) to IRA – Rollover Rules
Hello,
If a client had rolled over their previous employer’s 401(k) to their new employer’s 401(k) but now is no longer with that employer, can the client rollover the entire amount into an IRA? Or would they have to wait 12 months before they could rollover the portion they combined with the current employer’s 401(k)?
Thank you!
Permalink Submitted by Alan - IRA critic on Tue, 2025-01-07 18:11
Rollovers between qualified plans or between qualified plans and IRAs are not subject to the one rollover in 12 months limitation.
That limitation only applies to IRA to like kind IRA rollovers, such as TIRA to TIRA or Roth IRA to Roth IRA. It does not apply to Roth conversions as these are not between like kind IRA accounts.
Permalink Submitted by Kathy Bilansky on Wed, 2025-01-08 15:37
Alan,
Thank you!