I have liquidated mutual funds within my IRA (not a Roth) to cash and want to transfer to my 401K to consolidate does this make sense ?
2006-11-03 02:40:16 · 3 answers · asked by maureen631 2 in Business & Finance ➔ Personal Finance
Unless the IRA account was designated as a Rollover IRA, you will not be permitted to transfer the funds into a 401(k) account. Even if the IRA is a Rollover account, you need to check with your 401(k) administrator to see if the plan accepts rollovers from other qualified plans.
If you can do the rollover, then the next question is how do you feel about the management of the funds used by the 401(k) plan. This is more important to consider than the convenience of having all of the funds together, which has a positive appeal.
2006-11-03 04:33:31 · answer #1 · answered by Andreas 3 · 1⤊ 0⤋
in a word no. To liquidate those funds, unless you are of retirement age, will probably cost you more in penalties and fees than you will be making on the extra funds in the 401k. Before you do anything. consult your accountant.
2006-11-03 18:18:40 · answer #2 · answered by demonic angel 2 · 0⤊ 0⤋
Yes as long as the 401K plan allows IRA rollovers. Your employer needed to amend the plan to allow this it is not automatic.
2006-11-03 06:01:37 · answer #3 · answered by waggy_33 6 · 0⤊ 0⤋