Join Early Retirement Today
Reply
 
Thread Tools Display Modes
May I convert my old 401Ks to an IRA?
Old 11-15-2005, 11:39 AM   #1
Confused about dryer sheets
 
Join Date: Nov 2005
Posts: 2
May I convert my old 401Ks to an IRA?

I have 3 small 401Ks now. Two are from past employers and one I'm still contributing to with my current employer. I'd like to roll one of my old ones into a new ScottTrade IRA account. May I do that even though I qualify for my current employer's 401K?

I think there's some rule saying you can't contribute to an IRA if your employer offers a 401K. In this case, I wouldn't be contributing to the IRA, just transfering to an IRA. Can someone send me a link to an IRS FAQ page answering this question? Any reputible source is better than nothing.

Thanks,

Ray Metz
RayMetz100 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: May I convert my old 401Ks to an IRA?
Old 11-15-2005, 11:43 AM   #2
Dryer sheet aficionado
 
Join Date: Aug 2005
Posts: 25
Re: May I convert my old 401Ks to an IRA?

Yes you can rollover the two 401ks that are from past employers. The rule that you are referring to says that, above certain income levels, you cannot make a tax deductible contribution to an IRA while you qualify for a retirement plan at work. Rollovers are completely different from contributions. If you need to hear it from the source go to the irs web site at www.irs.gov. and type in key word, "IRA"
usc_et is offline   Reply With Quote
Re: May I convert my old 401Ks to an IRA?
Old 11-15-2005, 12:12 PM   #3
Confused about dryer sheets
 
Join Date: Nov 2005
Posts: 2
Re: May I convert my old 401Ks to an IRA?

Thanks!
RayMetz100 is offline   Reply With Quote
Re: May I convert my old 401Ks to an IRA?
Old 11-15-2005, 12:19 PM   #4
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,228
Re: May I convert my old 401Ks to an IRA?

Also, the appropriate publication on the IRS web site is pub 590. http://www.irs.gov/publications/p590/
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: May I convert my old 401Ks to an IRA?
Old 11-16-2005, 08:22 PM   #5
Full time employment: Posting here.
 
Join Date: Dec 2004
Posts: 714
Re: May I convert my old 401Ks to an IRA?

I've generally transferred into an IRA in such circumstances. However, check one thing before you jump ... I have one 401K account that includes a successful mid-cap fund that is closed to new investors. I like having access to this, and wouldn't if I rolled the 401K. An exception to the rule.

Vanguard, Schwab, Fidelity can easily handle the details for you. Good luck.
Craig is offline   Reply With Quote
Re: May I convert my old 401Ks to an IRA?
Old 11-21-2005, 10:22 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,668
Re: May I convert my old 401Ks to an IRA?

Charles,

One negative aspect of staying with your old 401(k) plan after leaving the employer is that there are some hidden expenses, outside of the actual MF that your funds are in, that you may not actually be aware of.* There extra expenses that fund the fees that the TPA charges the employer (normally passed on to the employees). If you care about ER, you may dig a little deeper into the plan document of the 401(k) to get your hands around the real costs or call the employer to find out about them.

Another negative is that the employer can delete the specific fund that you like any year that he wants to.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Reply

Tags
ira


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
IRA not deductible - convert to Roth someday? spncity FIRE and Money 6 02-20-2007 11:43 AM
Yet another reason to convert to a Roth IRA Nords FIRE and Money 5 02-13-2007 06:59 AM
Help! SEP IRA was transferred into a Traditional IRA...bad? soupcxan FIRE and Money 5 12-19-2006 11:19 AM
Possible to combine SEP IRA with standard IRA? soupcxan FIRE and Money 2 07-16-2006 11:08 AM
Not eligible for Roth IRA - conversion? Lusitan FIRE and Money 9 02-23-2006 10:00 AM

» Quick Links

 
All times are GMT -6. The time now is 10:32 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.