Getting Your Financial Ducks In A Row Rotating Header Image

Rollover Matrix

When you have money in several accounts and you’d like to have that money consolidated in one place, the question comes up – Which type of account can be tax-free rolled over into which other type of accounts?

Thankfully, the IRS has provided a simple matrix to help with this question. Below is the matrix, sourced from IRS Publication 590:

Roll To → Roth
IRA
Trad
IRA
SIMPLE
IRA
SEP
IRA
457b
Plan
QRP1
Pre-Tax
403b
Pre-Tax
DRAC2
↓ Roll From
Roth IRA Yes No No No No No No No
Trad IRA Yes3 Yes No Yes Yes4 Yes Yes No
SIMPLE IRA Yes5 Yes5 Yes Yes5 Yes4,5 Yes5 Yes5 No
SEP IRA Yes3 Yes No Yes Yes4 Yes Yes No
457b Plan Yes3 Yes No Yes Yes Yes Yes Yes3,5
QRP1 Pre-Tax Yes3 Yes No Yes Yes4 Yes Yes Yes3,5
403b Pre-Tax Yes3 Yes No Yes Yes4 Yes Yes Yes3,5
DRAC2 Yes No No No No No No Yes7
1QRP, or Qualified Retirement Plans include, for example, profit-sharing, 401(k), money purchase, and defined benefit plans
2DRAC or Designated Roth Accounts can be part of a 401(k), 403(b), or 457(b) plan
3Must include in income
4Must have separate accounts
5Only after the account has been established for two years
6Must be an in-plan rollover
7Only if a direct trustee-to-trustee transfer
%d bloggers like this: