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 IRA1 |
Trad IRA2 |
Trad SIMPLE IRA |
Roth SIMPLE IRA |
457(b) Plan |
QRP3 Pre-Tax |
403(b) Pre-Tax |
DRAC |
↓ Roll From | ||||||||
Roth IRA1 | Yes4 | No | No | Yes4 after 2 years5 | No | No | No | No |
Trad IRA2 | Yes6 | Yes4 | Yes4,10 after 2 years5 | Yes6 after 2 years5 | Yes7 | Yes | Yes | No |
Trad SIMPLE IRA | Yes6 after 2 years5 | Yes4 after 2 years5 | Yes4 | Yes6 | Yes7 after 2 years5 | Yes after 2 years5 | Yes after 2 years5 | No |
Roth SIMPLE IRA | Yes4 after 2 years5 | No | No | Yes4 | No | No | No | No |
457(b) Plan Pre-Tax | Yes6 | Yes | Yes10 after 2 years5 | Yes6 after 2 years5 | Yes | Yes | Yes | Yes6,8 |
QRP3 Pre-Tax | Yes6 | Yes | Yes10 after 2 years5 | Yes6 after 2 years5 | Yes7 | Yes | Yes | Yes6,8 |
403(b) Pre-Tax | Yes6 | Yes | Yes10 after 2 years5 | Yes6 after 2 years5 | Yes7 | Yes | Yes | Yes6,8 |
DRAC | Yes | No | No | Yes after 2 years5 | No | No | No | Yes9 |
Source: IRS Publication 590-A, Table 1-4 1Roth IRAs include Roth IRAs that receive employer contributions from a SEP plan. |