401(k) Rollovers

If you have money hanging out in an account with a former employer, move it into your new 401(k), IRA or Roth IRA.

Is it possible to roll over the funds in a 401(k) account with my old employer into the 401(k) I have with my current employer? It’s been four years since I left my old job. If a rollover to my current 401(k) is not an option, can I move the money to an IRA? My husband and I have an annual gross income of about $200,000. Do I even qualify for an IRA?

Ask your employer about its rules for accepting rollovers from other 401(k)s. Employers aren’t required to let workers roll 401(k) money from other company plans into their current 401(k)s, but virtually all of them allow it, says David Wray, president of the Profit Sharing/401(k) Council of America.

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Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.