I am now 72 years old. I retired from a state government agency last year with a DCP 457 account that allows only pre-tax contributions from my paychecks. I also retired 22 years ago from a private company with a Traditional 401(k) account that has both pre-tax and after-tax contributions. I like to do partial rollover of funds from my traditional 401(k) to the DCP 457 accounts.

For each partial distribution, the Traditional 401(k) plan will do direct rollover of pro-rata taxable portion to the receiving DCP 457 plan. However, the nontaxable portion of each distribution will be sent in a check in my name and directly to me. I will then deposit the check into an existing Roth IRA account with another financial institution within a few days of receiving the check (no violation of the 60-day rule).

The direct rollover of taxable funds has no restrictions on how frequently this can be done, and the once-per-year rule would not apply. I like to confirm that this once-per-year rule is also not applicable to the rollover of nontaxable monies from Traditional 401(k) to DCP 457 accounts, as this is not an IRA-to-IRA transfer.

Thank you in advance for your guidance.