Essential Resources for Employee Benefits Professionals

 
To Roll or not to Roll? 
  
 

 

If that is your question, the following chart illustrates what can and cannot be rolled over based on the changes according to the Economic Growth and Tax Relief Reconciliation Act 2001 (EGTRRA). Slow connections require patience when loading this comprehensive chart.

  
 

ROLLOVER

Before 2002

After
2001

From

To

 
 

IRA

IRA

Y

Y

SIMPLE IRA

N

N

Roth IRA

Y 1

Y 1

SEP

Y

Y

SIMPLE 401(k)

N

N 5

safe harbor 401(k)

N

Y

403(b)

N

Y

governmental 457

N

Y

qualified plan

N

Y

Roth 401(k)6

N N

SIMPLE IRA

IRA

Y 2

Y 2

SIMPLE IRA

Y

Y

Roth IRA

Y1, 2

Y 1, 2

SEP

Y 2

Y2

SIMPLE 401(k)

N

N 2,5

safe harbor 401(k)

N

Y 2

403(b)

N

Y 2

governmental 457

N

Y 2

qualified plan

N

Y 2

Roth 401(k)6
N
N

Roth IRA

IRA

N

N

SIMPLE IRA

N

N

Roth IRA

Y

Y

SEP

N

N

SIMPLE 401(k)

N

N

safe harbor 401(k)

N

N

403(b)

N

N

governmental 457

N

N

qualified plan

N

N

Roth 401(k)6 N N

SEP

IRA

Y

Y

SIMPLE IRA

N

N

Roth IRA

Y 1

Y 1

SEP

Y

Y

SIMPLE 401(k)

N

N 5

safe harbor 401(k)

N

Y

403(b)

N

Y

governmental 457

N

Y

qualified plan

N

Y

Roth 401(k)6 N N

SIMPLE 401(k)

IRA

Y

Y

SIMPLE IRA

N

N

Roth IRA

N

N 4

SEP

Y

Y

SIMPLE 401(k)

N 5

N 5

safe harbor 401(k)

Y

Y

403(b)

N

Y

governmental 457

N

Y

qualified plan

Y

Y

Roth 401(k)6 N N

safe harbor 401(k)

IRA

Y

Y

SIMPLE IRA

N

N

Roth IRA

N

N 4

SEP

Y

Y

SIMPLE 401(k)

N 5

N 5

safe harbor 401(k)

Y

Y

403(b)

N

Y

governmental 457

N

Y

qualified plan

Y

Y

Roth 401(k)6 N N

Roth 401(k) designated
contribution

IRA

N

N

SIMPLE IRA

N

N

Roth IRA

N

Y

SEP

N

N

SIMPLE 401(k)

N

N

safe harbor 401(k)

N

N

403(b)

N

N

governmental 457

N

N

qualified plan

N

N
Roth 401(k)6 N/A Y

403(b)

IRA

Y

Y

SIMPLE IRA

N

N

Roth IRA

N

N 4

SEP

N

Y

SIMPLE 401(k)

N

N 5

safe harbor 401(k)

N

Y

403(b)

Y

Y

governmental 457

N

Y

qualified plan

N

Y

Roth 401(k)6 N N

governmental 457

IRA

N

Y

SIMPLE IRA

N

N

Roth IRA

N

N 4

SEP

N

Y

SIMPLE 401(k)

N

N 5

safe harbor 401(k)

N

Y

403(b)

N

Y

governmental 457

Y

Y

qualified plan

N

Y

Roth 401(k)6 N N

other qualified plan

IRA

Y

Y

SIMPLE IRA

N

N

Roth IRA

N

N 4

SEP

Y

Y

SIMPLE 401(k)

N 5

N 5

safe harbor 401(k)

Y

Y

403(b)

N

Y

governmental 457

N

Y

qualified plan

Y

Y

Roth 401(k)6 N N

after-tax contributions in qualified plan

IRA

N

Y

SIMPLE IRA

N

N

Roth IRA

N

N 4

SEP

N

Y

SIMPLE 401(k)

N

N 5

safe harbor 401(k)

N

Y 3

403(b)

N

N

governmental 457

N

N

qualified plan

N

Y 3

Roth 401(k)6 N N

after-tax contributions in IRA

IRA

Y

Y

SIMPLE IRA

N

N

Roth IRA

N

Y1

SEP

N

Y1

SIMPLE 401(k)

N

N

safe harbor 401(k)

N

N

403(b)

N

N

governmental 457

N

N

qualified plan

N

N

Roth 401(k)6 N N
 
     
 
Footnotes for the TAGdata.com Rollover Reference Chart for 2001 and 2002 
 
 

A surviving spouse may rollover distributions into a tax-qualified retirement plan, 403(b) plan or governmental 457 plan.  Hardship distributions cannot be rolled over. 

The rules relating to non-governmental 457 plans have not been changed by EGTRRA. 

1 Only if the taxpayer’s adjusted gross income (AGI) for the tax year does not exceed $100,000 (as indexed), and the taxpayer is not married filing separately (Code Sec. 408A(c)(3)(B)).

2 only after the individual has participated in the SIMPLE plan for two years (Code Sec. 408(d)(3)(G)(ii)). 

3 only through direct trustee-to-trustee transfer. 

4 However, a distribution that is rolled over to a traditional IRA may then be rolled over to a Roth IRA, if the individual otherwise could roll over from the traditional IRA to a Roth IRA. 

5 Under Code Sec. 401(k)(11)(B)(i)(III), amounts received under a SIMPLE 401(k) plan may not be rolled over to another SIMPLE 401(k) plan because a SIMPLE 401(k) plan may only receive elective and matching contributions. 

6 References to "Roth 401(k)" should be read as "designated Roth contribution accounts" (includes 403(b) Plans)

Further, Rev. Proc. 97-9 says, "Generally, no contributions may be made during a year to a plan using the 401(k) SIMPLE provisions, other than those contributions described in section 2.03 below.  

However, the model amendment in appendix A of Rev. Proc. 97-9 appears to allow for rollovers. 

When Congress wrote EGTRRA, it could have amended Code Section 401(k)(11)(B)(i)(III) to allow rollovers to SIMPLE 401(k) plans. Congress did not make that amendment. 

IRS appears to have exceeded it's authority in this, in allowing a plan to adopt a provision that is not permissible under the Code. Until there is some clarification or further guidance, I do not believe the Code permits such a rollover.

This reference table is protected by copyright. Material appearing herein may be reproduced with appropriate credit. To use this reference on your website, link to: http://www.tagdata.com/charts/rollover-table.htm

Technical Answer Group, Inc.

  
     
     
Copyright © 2005, Technical Answer Group, Inc. TAG™