Rollover Pension and 401K
Can a Pension lump sum and a 401K be rolled over to one IRA when the employee retires? Both are at the same company. Does this violate the one rollover per year violation?
Thank you
Can a Pension lump sum and a 401K be rolled over to one IRA when the employee retires? Both are at the same company. Does this violate the one rollover per year violation?
Thank you
Permalink Submitted by Alan - IRA critic on Thu, 2021-01-21 23:01
The one rollover limit does not apply to rollovers from non IRA plans or to any rollover between IRAs and another type of plan including a Roth IRA. Further, this limit does not apply to any form of direct rollover. There is no reason that both these plans cannot be directly rolled into the same IRA account, and the IRA will still be treated as a rollover IRA. Of course, if there are any Roth 401k or after tax contributions in the pre tax portion, those amounts should be rolled into a Roth IRA.
Permalink Submitted by Dave Johnson on Fri, 2021-01-22 17:10
Thank you very much for your response.Dave