Putting an IRA into my 401K

I had got some bad advice from the financial company that was set up through work to handle our investments. I had called to talk to a financial adviser and asked them about my 401K vs an IRA. I was in my late 50’s. The person I talked to said it might benefit me more if I rolled my 401K into an IRA. He talked to me about it and afterward I decided to follow his advise. Well, I was waiting for changes to take place on my pay statement for the switch and I noticed the 401k did not go away. So I called the company back and I was informed that I had to have a 401k for my company’s matching benefit. So, I then had an IRA that had no money going into it. and a brand new 401k where my money was now going.
My company was bought out by another company. We are not with a new investment company for our 401K. I have been wondering, since I am now 63 and getting closer to retirement, if it would be best to leave everything the way it is or if I should put my IRA money back into my 401K, I talked to my new investment company and they did not seem like they really want to tell me what would be best.

Hi @michaell357,

Welcome to the Fool.

Let’s talk “match” first. Matching funds from the employer are based on your current contributions for a certain time frame (usually one year), not your balance.

IRA vs 401K:

  • IRA’s are normally more versatile because they have few limitations on the investments you can buy.
  • 401K’s usually have limited investments based on the company that administers the 401K plan. Many plans have been improving their offerings lately so you should check yours.

You need to speak with the administrator in your HR department to find out if they allow a transfer from an IRA to your 401K.

Personally, I would keep the IRA in place. Our old 401K’s had limited investments and I converted all of them as quickly as I could to our IRA’s.

Does that help you?

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They can’t. Unless they are a fiduciary (most 401ks do not provide such services), they cannot provide you any recommendations.

1 Like

Hi Michaell. I could be totally wrong on this but I’m pretty sure you will have to pay taxes on money withdrawn from an IRA. If that’s the case to me it wouldn’t make sense to move the money to a 401K.

Now having said that I’m not sure earlier there may be a tax rule in place that says it’s OK to move money from and IRA to a 401K with no tax consequences. I know you can move money from a 401K to an IRA because I did it 20 years ago with no problem.

Again check with someone more knowledgeable.


ImAGolfer (retired 2003)

Hi @ImAGolfer,

This is incorrect for this operation. No tax due.

The OP asked about transferring “money” from one traditional retirement account to another traditional retirement account.

The OP is not withdrawing from a retirement account to the “taxable world.”

Does that help you?

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Doesn’t help me but it might help the origninal poster.