I have two 401(k) plans with different employers and wanted to roll them over into a rollover IRA. Is it possible to open just one rollover IRA account and rollover both 401(k) plans into this account? I believe there is a 60 day rule of some sort with regards to rollovers, can someone explain that to me fully and how it would apply if I did multiple 401(k) rollovers?
I also wanted to convert that rollover IRA into a Roth IRA but would it count towards my Roth IRA contributions for the year?
2007-07-19 05:21:52 · 4 answers · asked by lewk 2 in Business & Finance ➔ Personal Finance
What you want to do is not a rollover but a direct transfer from your 401(k) accounts to an IRA trustee. I recommend Vanguard; they have low-cost funds and helpful information. Go to Vanguard (or wherever) and open an IRA account. It must be a traditional IRA, not a Roth. Then contact your former employers, request a distribution form, fill it out, send it back. Your 401(k) account will be transferred directly to the IRA. You won't get a check. You won't have to worry about the 60-day rollover window.
The transfer must be to a traditional IRA. Once that IRA is funded, you can convert all or part of it to a Roth. Remember, you have to pay taxes on the amount you transfer. A conversion doesn't affect contributions. But keep in mind the income limits that apply to a Roth (if you make too much money you don't qualify).
2007-07-19 06:18:03 · answer #1 · answered by Andy 3 · 0⤊ 0⤋
Just go to your bank and have them help you with it. Wachovia bank did this for me and they even have plans that you can contribute to the same account.
Yes, you have 30/60 days if you have the check in your hand before you have to decide if you want to do this as long as it's still in the other companies you can just leave it there which I was told isn't good because you tend to forget they are there as the years go on if your young. If your rollovering it the bank will usually give you the paperwork you turn into those existing plans so they know who to send the rollover too.
2007-07-19 05:28:01 · answer #2 · answered by Carol 3 · 0⤊ 0⤋
Yes, you can rollover your 401K's to one plan administrator. You can then take funds from that and put it into a ROTH IRA. It will not effect your annual contributions.
Do yourself a favor. Avoid Banks and Insurance Companies for any investment accounts.
2007-07-19 05:45:46 · answer #3 · answered by Common Sense 7 · 0⤊ 0⤋
yes you can...but do not have the check sent to you...because then the 60 day rule starts...contact your mutual fund company of choice...vanguard or fidelity and they will assist you in setting up the rollover roth ira
2007-07-20 05:21:31 · answer #4 · answered by zioncanyon 3 · 0⤊ 0⤋