Can a Traditional IRA be rolled into a Qualified Plan (401(k) Plan)?
Yes. An IRA distribution may, within 60 days after the distribution, be rolled into an eligible retirement plan for the distributee's benefit. The term “eligible retirement plan” includes qualified pension, profit-sharing, stock bonus, and annuity plans, tax-deferred annuities under Internal Revenue Code Section 403(b), and eligible deferred compensation plans maintained by state and local governments and their agencies and instrumentalities. The rollover contribution must include the “entire amount received” in the distribution, but it may not exceed the portion of the distribution that, in the absence of the rollover, would be included in the distributee's gross income. Tax-free transfers of qualified plan distributions into other qualified plans, either directly or through intermediate IRAs, help make employee pension rights portable and thus fulfill an important objective of ERISA.
Please contact one of our IRA Experts at 800-472-0646 for more information.