Rollover & transfer eligibility

Rollover eligibility at a glance

The IRS publishes a comprehensive Rollover Chart covering every account type and destination combination, including timing restrictions and special rules. It's the authoritative reference if your situation involves an account type not listed above.

Can I roll over a 401(k) or employer plan from a former job?

Yes. Separation from service, not age, is what starts the rollover clock on a former employer plan. This includes 401(k), 403(b), 457(b), profit-sharing plans, pension plans, defined benefit plans, and government accounts like the Thrift Savings Plan. Whether you left that job at 30 or 60, the funds are available to move once you've separated.

One practical requirement applies: your balance must be fully vested to roll over. Some employer plans use a vesting schedule, meaning the employer's matching contributions only become yours after a set number of years. Unvested amounts generally stay with the plan. Check with your former plan administrator before initiating a transfer.

One detail worth checking before you start: many former employer plans hold both tax-deferred and Roth balances in a single account. That combined balance cannot roll into one IRA. The tax-deferred portion needs a Traditional IRA and the Roth portion needs a Roth IRA, so confirm what your plan statement actually shows before considering a rollover.

Under IRC Section 408(d)(3), a partial rollover is permitted: you can move any dollar amount you choose and leave the remainder in your existing account, provided the plan allows it. For everything else to confirm before initiating that move, see What to know before rolling over an employer 401(k).

What about funds in my current employer's 401(k)?

Funds inside your current employer's plan are usually not eligible for rollover while you're still employed there. Most plans require either separation from service or reaching age 59 1/2 before permitting an in-service distribution.

Some plans do allow earlier access through an "in-service" distribution, based on years of service, plan-specific provisions, or hardship criteria, but these features are not standard. The place to verify is your plan's Summary Plan Description (SPD) or your HR department.

Important: If you previously rolled funds from a former employer's plan into your current employer's plan, those rolled-in funds are typically eligible to come back out, even while you remain employed. The key is distinguishing between funds your current employer contributed and funds you brought in from a prior plan.

Which IRA types can roll into a self-directed IRA?

All four major IRA types, Traditional, Roth, SEP, and SIMPLE, can move into a self-directed IRA. The core rule is that the tax treatment of the receiving account must match the source: Traditional rolls to Traditional, Roth rolls to Roth. SEP IRAs are treated as Traditional IRAs for rollover purposes and follow the same rules. For the mechanical distinction between the two ways funds actually move, see What is the difference between a Rollover and a Transfer?.

SIMPLE IRAs follow the standard match rule once the two-year restriction period has passed. Before that point, they can only roll into another SIMPLE IRA, including a self-directed SIMPLE IRA. See the two-year rule section below for details.

Which IRA types can roll into a Solo 401(k)?

A Solo 401(k) accepts rollovers from Traditional IRAs, SEP IRAs, and SIMPLE IRAs (after the two-year mark), but not from Roth IRAs. Roth IRA funds must remain in an IRA structure and cannot be converted into a Solo 401(k), regardless of the account's age or balance.

Designated Roth accounts inside employer plans are a different matter. A Roth 401(k), Roth 403(b), or Roth 457(b) can roll into the Roth participant account within a Solo 401(k) and maintain its Roth status throughout. The distinction is between employer-plan Roth accounts, which are eligible, and standalone Roth IRAs, which are not.

If you hold both traditional and Roth balances, whether from IRAs or employer plans, you'll maintain separate pre-tax and Roth participant accounts within the Solo 401(k) to preserve the tax treatment of each.

Which accounts cannot roll into a Solo 401(k)?

The Solo 401(k) accepts rollovers from most plan types but has two firm exclusions. Roth IRAs and inherited IRAs cannot roll into a Solo 401(k). These accounts must remain in IRA structures.

A SIMPLE IRA within the first two years of its existence also cannot move to a Solo 401(k).

What is the SIMPLE IRA two-year rule?

A SIMPLE IRA that has been active for less than two years can only roll into another SIMPLE IRA, not into a Traditional IRA, Roth IRA, SEP IRA, or Solo 401(k). This restriction is established under IRC Section 72(t)(6) and applies from the date of first contribution to the SIMPLE plan.

You can establish a new self-directed SIMPLE IRA to receive these funds before the two-year mark. That self-directed SIMPLE IRA will also be restricted from accepting funds from other IRA types until its own two-year clock is completed.

After the two-year period, a SIMPLE IRA rolls over freely, into any compatible IRA or a Solo 401(k).

Can I roll over an inherited IRA?

An inherited IRA can move to a self-directed custodian, but only to another inherited IRA carrying the same original account owner's name.

The beneficiary status must be preserved throughout. You cannot combine an inherited IRA with your own retirement accounts, and it cannot roll into a Solo 401(k) under any circumstances.

The practical result: you can move an inherited IRA to a self-directed structure and invest in alternative assets, but the account must be maintained as a separate inherited IRA at all times.

Are there funds I cannot roll over, regardless of account type?

Yes. Certain distributions are ineligible for rollover even when the underlying account would otherwise qualify.

Required Minimum Distributions (RMDs) cannot be rolled over. Once you reach the RMD age, the annual minimum distribution must be taken as taxable income first. Only funds above the RMD amount in that calendar year are eligible to roll over.

Hardship distributions from employer plans are also ineligible. Funds distributed for a qualifying hardship cannot be redirected into another retirement account.

Substantially Equal Periodic Payments (SEPPs), a series of distributions structured under IRC Section 72(t), cannot be rolled over mid-stream. Once SEPP distributions begin, the series must run its full course.

Annuity contracts with fixed terms may carry surrender charges or early liquidation penalties if cashed out for rollover. This is a product-level restriction from the provider, not an IRS rule, but it creates a real cost to consider before initiating a rollover from an annuity-based account.

Next Steps

Now that you've confirmed your account is eligible, the next step is understanding how the mechanics actually work. See IRA rollovers & transfers for direct vs. indirect rollovers and the 60-day rule, or compare structures directly with the Plan Finder.