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Spouse 401k question

1,875 Views | 11 Replies | Last: 7 yr ago by libertyag
Spaceship
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AG
My wife and I have separate 401k's with Alerus (myself) and Fidelity (her). She recently left her employer and has no intent to return, and will probably be a stay-at-home mom for the foreseeable future. Can I roll her 401k into mine as a consolidation? The Alerus customer service rep said that isn't allowable by the IRS, but he didn't sound very confident, so can someone here clarify? Thanks.
aggie028
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AG
Not to my knowledge but roll it over to an IRA. What is the advantage of rolling it into yours?
JDCAG (NOT Colin)
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AG
Rolling it to an IRA should give you way more flexibility, right. Main reason to put money into a 401k is for company match but at this point I would think the IRA would be a better outcome even if you could do the roll into yours.
Stive
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AG
Her IRA has to stay in an account with her name (either the IRA, or a 401K).

Can't combine them.
libertyag
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AG
Have to roll it into an IRA for her. If you roll it into yours, she has a taxable distribution and you have an invalid rollover in your account which will result in an annual 6% tax until your correct it. Your 401(k) plan administrator should tell you they would not accept a rollover from a spouse.
Whitetail
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AG
Like others have said, roll it into an IRA, then fill out the paperwork with Fidelity so you can add her account to yours so you can do the investing of that account for her.
AggieRAGE
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AG
Question since I may be going through the same thing with my spouse soon too. What taxes (if any) have to be paid if you roll a 401k into an existing Roth IRA?
Whitetail
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AG
Nm
Stive
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AG
Whitetail
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AG
Miss read, sorry.
Harkrider 93
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AG
quote:
Question since I may be going through the same thing with my spouse soon too. What taxes (if any) have to be paid if you roll a 401k into an existing Roth IRA?
No taxes if it is a Roth 401k to a Roth IRA. You will pay your marginal tax rate if you roll and convert a pretax 401k to a Roth 401k.

We would need more information to know what the exact rate would be.
AggieRAGE
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AG
What if I converted her 401k to a Roth 401k and then moved it over into a Roth IRA?
libertyag
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AG
quote:
What if I converted her 401k to a Roth 401k and then moved it over into a Roth IRA?
Would owe taxes when the 401k went to a Roth 401k (provided your employer allowed you to do that).
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