A couple of self-directed 401k Plan questions for you.
QUESTION 1) Can my wife and I both rollover funds from other 401(k) and IRA based accounts into this self-directed 401k plan account?
ANSWER: Yes the retirement account rollover/transfer rules allow for the transfer of all 401k plans and most IRA types to a self-directed 401k plan.
QUESTION 2) Below is a list of accounts that my wife and I have. Which of these accounts can we rollover (or contribute from) into this self-directed 401k plan account?
My Accounts
- Rollover IRA – $18.4K
- Roth IRA – $6K
- Traditional IRA – $5K
- Current Employer 401(k) – $84K total – $75K of that total can be withdrawn because it is “Rollover” – Note: I plan to continue to work for this employer
ANSWER: The rollover IRA, Traditional IRA and the $75k of 401k rollover funds may be transferred to a self-directed 401k; however, the Roth IRA may be not be rolled over or transferred to the self-directed 401k as the rules restrict the movement of Roth IRA funds to any type of 401k.
My Wife’s Accounts
- Roth IRA – $7.3K
- Traditional IRA – $4.6K
Please let me know if you need additional information.
ANSWER: As listed above, the Traditional IRA may be rolled/transferred to the self-directed 401k, but not the Roth IRA. Click here to see a full list of retirement accounts that may be rolled/transferred to a self-directed 401k plan.
Thanks,
Josh in New York
