Roth IRA - Roth 401k Rollover - Ed Slott and Company, LLC

Submitted by ShipsnGiggles on Fri, 2020-12-04 17:33

It’s my understanding that rolling Roth IRA funds to a Roth 401(k) is prohibited – am I mistaken? From Ed’s Mailbag

Question:

Hello Ed,

I have a Roth IRA with a custodian and a Roth 401(k) that is in a bank account with myself as trustee. I am self-employed, 65 years of age, and have had both accounts open over 5 years. Can I move the self-directed Roth IRA funds (with a custodian) over to my Roth 401(k) account tax free? I can’t find anything online that addresses this transfer.

Answer:

As long as there are no liquidation restrictions on the investments within your self-directed IRA, and as long as the 401(k) plan is designed to allow rollovers into the plan, then yes, you can proceed. There will be no taxes due on the rollover, and you will be able to consolidate your Roth dollars.

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Permalink Submitted by Alan - IRA critic on Fri, 2020-12-04 18:38

You are correct and the mailbag is wrong. The only portability for a Roth IRA is to another Roth IRA. This error was noted by DMx yesterday and is a few threads down the list.