IRA rollover to 401(k)

[R. Butler]

100% owner wants to roll his traditional IRA into his 401(k).  Assuming the plan accepts rollovers from IRAs I don't see why he can't do that, but his CPA is telling him that owners can't roll IRAs into their company's 401(k). 

Am I missing something? 

Thanks for any guidance.

[Belgarath]

That's one of the more bizarre statements I've heard in a while. No, you aren't missing anything. I have to wonder if there is more to it - is this just what the participant is telling you the CPA said, or is this the actual "verdict" of the CPA?

If the CPA is really saying this, I would ask for the CPA to produce citation to support that statement...

[BG5150]

Does the CPA think this is some sort of ROBS situation?

[hr for me]

Not sure if this is still true, but back in the day, there were some traditional IRAs that were "conduit" IRAs where they could later be rolled back into an employer 401k -- they were not allowed to comingle other money into them.....and others that were "non conduit" and could not be rolled back to a 401k but funds could be comingled.  Don't know if IRAs still have that designation or not, but it is possible that his personal traditional IRA does depending on when it was opening and under what criteria -- and whether he comingled funds.

[K2retire]

20 hours ago, hr for me said:

Not sure if this is still true, but back in the day, there were some traditional IRAs that were "conduit" IRAs where they could later be rolled back into an employer 401k -- they were not allowed to comingle other money into them.....and others that were "non conduit" and could not be rolled back to a 401k but funds could be comingled.  Don't know if IRAs still have that designation or not, but it is possible that his personal traditional IRA does depending on when it was opening and under what criteria -- and whether he comingled funds.

That rule changed a long time ago. But it may well be what the CPA is thinking of.