Yes. A traditional (pre-tax) IRA can be rolled into a 401(k), tax-free and penalty-free.  You should consult with the 401(k) plan administrator to confirm the plan documents accepts rollovers.

Yes. You can rollover SEP IRA funds tax-free and penalty-free to an IRA.  If the rollover is indirect (IRA holder receives the funds), the IRA holder has 60 days from receipt to send the funds to the IRA custodian or it will become taxable and subject to a penalty if the IRA owner is under the age of 59 1/2.

An Individual Retirement Account (IRA) is the most common type of retirement account.  There are approximately 50 million IRAs totaling approximately $10 trillion. The most common types of IRAs are the Traditional IRA, Roth IRA, SEP IRA, and the SIMPLE IRA.  For 2019, the maximum Traditional IRA and Roth IRA contribution amounts are $6,000, or $7,000 if over the age of 50. The SEP IRA maximum contribution amount is $56,000 and the SIMPLE IRA maximum contribution amount is $13,000, with a $3,000 catch-up if over the age of 50 for 2019.

Yes, if there is a plan triggering event.  In general, you need a triggering event to roll funds out of a 401k plan, which typically consists of one of the following: (i) you are over the age of 59 1/2, (ii) you leave your job, or (iii) the company terminates the plan. If funds are rolled directly from a 401(k) plan to an IRA there is no tax or penalty.

Beginning in 2010, the modified Adjusted Gross Income (“AGI”) and filing status requirements for converting a Traditional IRA to a Roth IRA are eliminated. In other words, there are no longer any income restrictions for making Roth IRA conversions.  Note – tax is due on the amount of the cash or fair market value of the asset being converted to Roth. However, the 10% early distribution penalty would not apply.

To permit tax-free transfers of retirement savings from one type of investment to another, as well as to increase the portability of qualified plan rights for employees moving from one job to another, Congress included a complicated web of rollover provisions in ERISA. These provisions cover transfers from one IRA to another, transfers from a qualified pension, profit-sharing, stock bonus, and annuity plans to IRAs, and transfers from IRAs to qualified plans. In general, a rollover of retirement funds to an IRA is tax-free.  Rollovers can either be direct or indirect. A direct rollover can be done without limit, whereas, an indirect rollover can only be done once every 12 months.

Yes. A rollover form one traditional IRA to another Traditional IRA is actually called a transfer and can be done without limit. A transfer occurs between IRAs and a rollover occurs when one of the retirement accounts involved is not an IRA.  For example, moving funds from a 401(k) plan to an IRA is treated as a direct rollover, whereas, moving funds between IRAs is called a transfer.

Yes. In general, you can transfer tax-free, money or property from other retirement programs (including Traditional IRAs) to a Traditional IRA. You can generally make the following kinds of transfers:

  • Transfers from one trustee to another
  • Rollovers
  • Transfers incident to a divorce

Protection for some IRAs came in 2005 through the Bankruptcy Abuse Protection Act. The law provides debtors in bankruptcy with an exemption for retirement assets in qualified plans, qualified annuities, tax-sheltered annuities, and self-employed plans. In addition, the law exempts all assets in an IRA that is attributable to rollovers from other retirement plans. If you happen to have a traditional IRA or Roth IRA containing assets that are not attributable to a rollover from some other type of retirement plan (i.e. the assets are from amounts you contributed directly to the IRA), then you will also be allowed an exemption of up to $1 million total for the assets in those contributory IRAs.

Yes. You must not have reached age 70 and 1/2 by the end of the year.  Note – in the case of a Roth IRA, there is no age limit for making Roth IRA contributions.

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