401K Money Movements

[Guest rlyoung]

In Feb 1999 I rolled the company contribution portion of my 401k saving plan into a Merrill Lynch IRRA distributing the money across several mutual funds. This past summer I sold the mutuals and the money is currently in an ML money market. Can I roll the money back into my 401k savings plan? I realize I can not put it back into company stock which was the companys contribution from where it came from, but I want to roll it back into one of the 401k funds where my contributions currently reside. I have not made any additional contributions to the ML account and have only made a small return on it. The 401K plan administrator says yes but ML says no. Who is right?

[MWeddell]

If no other contributions were made to that IRA other than rollovers from qualified plans, then you should be able to roll it back into a qualified plan. Most plans that accept rollovers don't place any restriction, so you probably can roll it back into your employer's plan.

[Guest KGibson]

Ask for a copy of the 401(k) summary plan description (SPD)that you will be rolling the money into. Typically a SPD will state that you may roll that into your 401(k) as long as no after tax monies have gone into the account, (other than your earnings/losses as you described.)If you can not find that info in your SPD ask your HR/Benefit representative for info from the plan documents. Take that info to ML and tell them to provide to you in writing why it can NOT be rolled over.

[KIP KRAUS]

To my knowledge, brokerage firms have no controle over an employer's qualified plans, and their acceptance of qualified rollover money,assuming it is qualified. Get the rollover paperwork from your employer and request a distribution from ML in accordance with the paperwork.

One thing you may want to consider is that there may be an early withdrawal penalty imposed by ML, which may change your mind.

[Guest JimD]

I'm curious. Are you still employed? What was the basis for the transfer to the IRA? My experience is that a former employer would not allow a rollover back to the plan. If you are still employed I agree with the others comments.