A direct rollover is the simplest way to accomplish moving any kind of retirement account balance.
As the table below shows, you can generally roll over a former 401(k) retirement plan account directly into a new employer’s 401(k) plan, 403(b) plan or other qualified plan and vice-versa.
In addition, eligible rollover distributions can be transferred to a Traditional or Roth IRA. If the transfer is to a Roth IRA, you would have to include the taxable amount as income for the year.
As for any designated Roth 401(k) contributions and earnings, these amounts can be rolled over only to a 401(k) or 403(b) plan that has a Roth feature or to a Roth IRA. Rollovers of otherwise nontaxable amounts to another designated Roth account must be accomplished through a direct rollover.
It is possible for you to receive a Roth account distribution as an indirect rollover and roll over any taxable portion of that distribution to a designated Roth account with another plan within 60 days. However, the recipient plan would have additional reporting requirements.
| Rolling Distribution to | ||||||
|---|---|---|---|---|---|---|
| Rollover from: | 401(k) | Roth 401(k) | 403(b) | Roth 403(b) | Traditional IRA | Roth IRA |
| 401(k) | Yes | No | Yes | No | Yes | Yes* |
| Roth 401(k) | No | Yes* | No | Yes* | No | Yes |
| 403(b) | Yes | No | Yes | No | Yes | Yes* |
| Roth 403(b) | No | Yes* | No | Yes* | No | Yes |
* By direct rollover
Additional rules may apply.
If you have further questions about your specific situation, contact a customer solutions specialist at 1-888-98-GUIDE (1-888-984-8433) Monday through Friday between 7 a.m. and 6 p.m. CT.
This information should not be considered tax or legal advice. GuideStone® stands ready to assist your organization as you work with your legal and tax advisors by providing resource information that you and your advisor may find beneficial.
Be sure to consider all of your available options before rolling over your retirement assets. It is important to consider all of the potential advantages and disadvantages of rolling over your retirement assets to an IRA, including the different investment options that are available to you as well as the services, fees, expenses, withdrawal restrictions and tax consequences of rolling over your assets to an IRA. Other options are available besides rolling over your employer-sponsored retirement plan, including leaving the account with your previous employer. An employer-sponsored retirement plan may offer advantages investors can’t get if they roll the money into an IRA.
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• Jan 28, 2021 