Rollover Chart
November 21, 2023
We are frequently asked about rollovers. Can this plan be rolled over into that plan? Can that plan be rolled over to this plan? It can be quite confusing.
Recently we came across a handy IRS "Rollover Chart." We've posted an image below. You can see it larger here.
Too Much Complexity
As useful as this chart is, it's really just a symptom of how complex it is to save for retirement in this country. Not only do we have an alphabet soup of work-based and individual retirement plans, check out all of the exceptions and qualifiers in the numbered notes below the chart. Good grief. We can and should do better.
One Retirement Plan for All?
We wrote about an idea floated during the Bush Administration in the 2000s that would have greatly simplified saving for retirement. We should revisit this idea.
Stay wise and well (and advocate for a simpler system).
Related Podcast:
Man with the (Better Retirement) Plan If only Congress had adopted a 2003 Bush Administration plan to drastically simplify saving for retirement. We interview William Sweetnam the Benefits Tax Counsel at the Treasury Department from 2001-2005. Listen Now »