That’s right, the words helpful and IRS sometimes go together. The IRS has produced a chart showing whether a rollover between 401(k), 403(b), 457(b), IRA, Roth IRA, SEP IRA and SIMPLE IRA accounts is permitted. Clicking on the chart or here will download a pdf version of the chart. The chart includes hyperlinks to additional resources on the IRS website.
Changes to 401(k) and IRA rollover rules for 2008
There are some changes for 2008 that are reflected in the chart. For example, you can now do a direct rollover from a 401(k), 403(b) or 457(b) to a Roth IRA (subject to income limitations). Before 2008, you had to first rollover to a traditional IRA and then convert to a Roth IRA. The chart also indicates when a rollover is permitted subject to certain limitations.
Rollover IRA Options
If you are looking to open a rollover IRA account, there are several great online discount brokers that offer no fee IRA accounts:
- Scottrade: Scottrade is arguably the most feature-rich online discount broker available. In addition to an online brokerage, Scottrade offers physical locations throughout the U.S. You can read our Scottrade review for more information.
- OptionsXpress: OptionsXpress not only offers discount stock trading, but also professional grade tools and trading platform. You can get more details and open an account online at OptionsXpress.