Get Your Free Financial Score →Sign InYour data on this device
Free · Open access · No sign-up required
LearnFAQRetirement Planning

How do I roll an old IRA into my current 401(k), and why would I?

Answer

If your employer's plan accepts incoming rollovers (most do), you can move a traditional IRA into your 401(k) via a direct trustee-to-trustee transfer. You cannot roll a Roth IRA into a 401(k), only pre-tax IRA money and only the pre-tax portion.

The main reason to do this reverse rollover is to clear pre-tax IRA balances out of the way so you can execute a clean backdoor Roth without triggering the pro-rata rule, which would otherwise tax part of your conversion. Other reasons include access to the Rule of 55, stronger ERISA creditor protection, and the ability to delay RMDs on that money if you are still working. Confirm your plan accepts rollovers and only pre-tax dollars move in.

← All FAQsMore Articles →

Educational disclaimer: All content on WealthSerene.com is for educational purposes only and does not constitute investment advice. Projections and calculations are illustrative — actual results will vary based on market conditions, your specific situation, and many factors outside this tool’s scope. Always consult a qualified financial professional for advice specific to your situation. View full disclosures →