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ira rollover into 401k?Forum overview » 401k vs IRA vs Roth » ira rollover into 401k? 
 
 triedalotofids
Posted 2007-02-12 19:31:00 During a brief period when I was self employed I opened an IRA - quite number of years ago. I recovered my senses and returned to corporate America and my 401k. Here is what I would like to do - want advice if this is permissible. I have an opportunity to do a make up contribution to my 401k as I took a sabbatical last year and was not allowed to contribute during that time. I just have them deduct an additional amount from my pay -- either lump or spread out over the year. The total in my IRA is less than what I can make up so this is my idea: take the money out of the IRA for a self directed roll over - let's say 5K. Then make a make up contribution of 5K in a lump sum (i think I have 60 days for a rollover, hence doing a lump sum make up contribution. Then I would deposit the 5K IRA rollover check into a non retirement account. I this sort of swap permitted?
 brent
Posted 2007-02-14 15:37:14 Thanks for the question. 1 You have a contribution. That must be funded by new funds. In a 401k, it must be from your employer. 2. You can Roll over your IRA into a 401k only if the 401k plan sponsor allows it. Check with your company. I personally believe an IRA is better, much more flexible than a 401k. You could possibly more that into A Roth IRA. Sorry, the way I understand your questions- NO SWAPING is permitted Good luck!
triedalotofids
Posted 2007-02-16 22:15:57 Rats! Okay - but tell me why you think and IRA is better for me? I do not get a deduction for putting (ater tax)money in an IRA -LJ
brent
Posted 2007-02-19 18:07:07 On a 401k you are limited by the additional stricter guidelines both from a regulatory standpoint, and also your company has many additional guidelines also. Your 401k might also be more expensive with lots of hidden costs. In simple terms the IRA allows you have allot more freedoms. I wish you the best.
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