Rollover to employer 401k plan from an IRA that may contain contributi

[Guest Cliff Langwith]

Has anyone heard of a participant being allowed to rollover

money into his currently employer's 401k from an IRA that contained contributions before the 401k money arrived, that

were not from a qualified plan?

My guy says he doesn't remember if the money is all 401k or not. But he wants to rollover into the 401k plan anyway.

[Michael Devault]

Under current law, if the IRA contains funds from other sources, it may not be rolled into the 401(k) plan. Only IRAs in which all funds are attributable to a rollover of an eligible rollover distribution from a qualified plan can be rolled back into another qualified plan. This may change if the proposed tax bill becomes law.

It should be a relatively easy task to determine the source of funds in the IRA. Ask the vendor to provide a statement showing the contribution history of the IRA. If there are contributions other than the rollover, it can't be rolled back into a 401(k).

Hope this is of some benefit to you. Good luck.

[Guest Cliff Langwith]

Thanks, Michael. Your response does help. It reaffirms what I thought. There is Doubting Thomas here making me think I was crazy. I am, but for different reasons.

Thanks again.