Home > Benefits > Beginner

Benefits Beginner: Introduction to 401(k) Plans

Introduction to 401(k) Plans Making Contributions to a 401(k) Plan 401(k) Plan Contribution Requirements 401(k) Plan Distribution Requirements Other Types of 401Ks: Starter, Solo, and SIMPLE The Roth 401(k) 401(k) Rollovers Types of 401(k) Rollovers Summary of 401(k) Plans
Image for 401(k) Rollovers

401(k) Rollovers

(7 of 9)

401(k) Rollovers

A 401(k) rollover is the moving of a 401(k) plan from its current custodian (the company holding it) to another. The following requirements must be met so that the 401(k) may keep its tax-deferral:

Things To Know

  • You must meet certain requirements before you can roll a 401(k) over.

Requirements

  • The new 401(k) plan must accept rollovers.
  • If you prefer (or if the new 401[k] does not accept rollovers), your original 401(k) funds can be rolled over into a traditional IRA. (Rollovers into Roth IRAs are also allowed in some circumstances.)
  • The full amount from the original account must be placed into the new 401(k) (or IRA) within 60 days. If a lesser amount is rolled over, penalty taxes will be applied.