Rollover IRA, Rollover IRA from a qualified plan Options

[jkolsen]

You can rollover an contributory IRA to a 401(k) Plan - but can you rollover a rollover IRA from a qualified plan to another qualified plan?

Thanks

[ERISAnut]

You should look at each rollover as taking on the characteristics of the plan it is being rolled into. So, the history of the funds go away. Of course, the exception would be the rollover of a death beneficiary who is not a spouse to an inherited IRA. But, in all other instances, the funds take on the characteristics of the new arrangement.

With that said: You can roll over amounts from a traditional IRA into a Qualified Plan. You can also roll over amounts from a Qualified Plan to a traditional IRA. There's no continuous loop to account for.

Hope this helps.

[masteff]

can you rollover a rollover IRA from a qualified plan to another qualified plan?

And yes, you can rollover from QP to QP even if it previously orginated from an IRA.

As ERISAnut correctly states, it lost it's IRA characteristics when it entered QP #1. It's all one single QP distribution when rolled to QP #2. While QP #1 has to account for the rollover source monies separately while it's in the plan, when disbursed the only distinction is pretax, aftertax and Roth account.

This post has been edited by masteff: Aug 25 2008, 03:41 PM