- Traditional IRAs
- Roth IRAs
- SEP IRAs
- Simple IRAs
- 403(b) Plans
- Thrift Savings Plan
- Education Savings
Can I rollover amounts from my 401(k) or 403(b) to my IRA?
Last Updated December 17, 2015
It depends. First, the receiving IRA must be a Traditional (including a SEP) IRA, or a Roth IRA[i]. These amounts cannot be rolled over to a SIMPLE IRA. In addition, the amount must be rollover eligible. The following are examples of amounts that are not rollover eligible:
- Part of a series of substantially equal payments made
- Required minimum distribution amounts
- Any hardship withdrawal
- Return of an excess contribution, excess deferral, or excess annual addition, together with allocable income
- The cost of life insurance coverage
- Deemed distributions upon the default of a loan
- Dividends paid on employer securities in an employee stock ownership plan (ESOP)
Note: Amounts rolled over to your Roth IRA is treated as ordinary income for the year the distribution occurs. On the other hand, a rollover to a traditional IRA is not included in income.
Caution: If you have employer stocks in your qualified plan account, check with your financial or tax professional to determine whether those amounts should be rolled over. The NUA on employer stocks are eligible for special tax treatment if certain requirements have been met.
Please consult with your financial advisor or tax professional regarding your distribution and rollover.
[i] Prior to 2008, amounts could not be rolled over from a qualified plan or 403(b) to a Roth IRA. However, the Pension Protection Act of 2006 (PPA), changed that rule effective for distributions that occur 2008 and after.
Question answered by by Denise Appleby