eligible rollover distribution

[Rai401k]

We have a client that would like to rollover a substantial amount of money from his IRA to his 401(k) plan. However he would like to be able to access this money by either taking a lump sum distribution each year if needed or rolling it back to the IRA.

The plan document states that a participant may distribute all or a portion of the amount credited to the participants rollover account at any time.

He is under age 59 1/2, i understand that he could take lump sum distributions from his rollover source from the plan based on what the document says. However can he roll it back to his IRA? Is it considered an eligible rollover? I believe it is but i just want to make sure.

[John Feldt ERPA CPC QPA]

Seems okay. Does the plan only allow lump sum? If he wants to take only a portion, you may want to look at the distribution options available in the plan to see if he can take only a portion. A lump sum is a payment of the entire balance to the credit of a participant paid within the participant's tax year. IRC 402(d) or (e) something.

Are you concerned about the "one per year" rollover issue? That does not apply to direct trustee to trustee rollovers - so if the money is paid directly to the IRA, then that does not count against the one per year limit.