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parisrosaries
Level 2

Can I rollover IRA again?

I have a Rollover IRA account I opened years ago (rolled over 401k from an older job).

I just left another job in 2021 and wanted to rollover my 401k funds from this previous job into my current Rollover IRA account. Is there anything I need to consider that would affect taxes? Is it ok to rollover multiple 401ks into the same Rollover IRA account?

 

I don't have a traditional IRA or a Roth IRA. 

1 Best answer

Accepted Solutions
Opus 17
Level 15

Can I rollover IRA again?

Yes, you can add new rollover money from your 2021 job into the IRA.  

 

You DO have a traditional IRA (assuming your 401k was pre-tax).  There's nothing different about a rollover IRA except the original source of the money, which doesn't matter for most purposes.  (For some purposes, like bankruptcy, it may be advantageous to keep IRA funds from a workplace rollover separate from IRA funds from personal contributions.  But for taxes, it doesn't matter.  An IRA is an IRA.)

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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4 Replies
Opus 17
Level 15

Can I rollover IRA again?

Yes, you can add new rollover money from your 2021 job into the IRA.  

 

You DO have a traditional IRA (assuming your 401k was pre-tax).  There's nothing different about a rollover IRA except the original source of the money, which doesn't matter for most purposes.  (For some purposes, like bankruptcy, it may be advantageous to keep IRA funds from a workplace rollover separate from IRA funds from personal contributions.  But for taxes, it doesn't matter.  An IRA is an IRA.)

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
parisrosaries
Level 2

Can I rollover IRA again?

Thank you for explaining, I always get a little confused! To clarify, are there any tax implications for rolling over another pre-tax 401k into the same IRA?

 

Thanks again!

Critter-3
Level 15

Can I rollover IRA again?

None.

Opus 17
Level 15

Can I rollover IRA again?


@parisrosaries wrote:

Thank you for explaining, I always get a little confused! To clarify, are there any tax implications for rolling over another pre-tax 401k into the same IRA?

 

Thanks again!


Any traditional IRA (pre-tax) can receive rollover funds from a pre-tax 401(k) or from another pre-tax IRA without tax consequences.  

 

When you roll over workplace funds into an IRA, it is not necessary to keep funds from different workplaces in separate IRAs. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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