Rolling IRA into Company Plan

For reasons discussed in another post, I am thinking of rolling a significant amount of money from my IRA into my company's 401(k) plan. Can anyone think of any implications other than the following:

1) I will now be limited to the investment choices in the employer's plan. (Not a big deal; I am mainly in index funds, and the employer plan has an S&P 500 fund with expenses of 5 basis points. I also have a larger amount in a Roth IRA that I will be able to keep investment control over.)

2) I can no longer convert the amount to a Roth if I choose. However, I can in effect "convert" $22,000 a year (I am over 50) by contributing to the employer plan on a Roth rather than after-tax basis.

3) I could now borrow against the money if I wanted to take a loan from the employer's plan. (Not that I can see doing this.)

4) If the employer plan has an annuity option when I retire, I would be able to take advantage of that for the full amount. (However, I could always do the rollover later.)

Have I missed anything?

Thanks.

Reply to
Hank Youngerman
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I looked into doing this for a client a good number of years ago. At that time it wasn't allowed. Has that changed?

Reply to
Stuart A. Bronstein

IIRC it's always been possible if the IRA was a "conduit" IRA holding only a rollover from a prior employer's plan and earnings on it, but no conributions. That was changed several years ago, and now you can roll any pre-tax IRA money into your current employer's plan if the plan allows it. See Pub 590.

Phil Marti Clarksburg, MD

Reply to
Phil Marti

Actually, it was allowed but ONLY from a rollover IRA that was funded from a 401(k) plan with no additional contributions. As far as I know, that wasn't changed prior to 2008. (I'd have to look it up to see if it's part of a recent change since now we can do all kinds of transfers between plans.)

Reply to
D. Stussy

messagenews:Xns9CFCC43941C2Cspamtraplexregiacom@130.133.4.11...

In the other thread, someone mentioned that there was an IRS chart about what types of contributions could be rolled. I also thought it was only conduit IRA's that could be rolled, but that doesn't seem to be the case. It's up to the employer, I think, how their plan is structured. I'm pretty sure that Roth IRA's can't be rolled, even if the plan has a Roth option. But I could be wrong about that.

Reply to
Hank Youngerman

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