Editing 401(k) (section)

==Rollovers==

Rollovers between eligible retirement plans are accomplished in one of two ways: by a distribution to the participant and a subsequent rollover to another plan or by a direct rollover from plan to plan. Rollovers after a distribution to the participant must generally be accomplished within 60 days of the distribution. If the 60-day limit is not met, the rollover will be disallowed and the distribution will be taxed as ordinary income and the 10% penalty will apply, if applicable. The same rules and restrictions apply to rollovers from plans to IRAs.

===Direct rollovers===
A direct rollover from an eligible retirement plan to another eligible retirement plan is not taxable, regardless of the age of the participant.<ref>{{cite web |url=https://www.irs.gov/taxtopics/tc413.html |title=Topic 413 - Rollovers from Retirement Plans |publisher=Internal Revenue Service |year=2013 }}</ref>

===Traditional to Roth conversions===
In 2013, the IRS began allowing conversions of existing Traditional 401(k) contributions to Roth 401(k). In order to do so, an employee's company plan must offer both a Traditional and Roth option and explicitly permit such a conversion.<ref>Caplinger, Dan. (2013-01-08) [http://www.fool.com/retirement/401k/2013/01/08/convert-401k-to-roth-smart-move.aspx Convert 401(k) to Roth: Smart Move?]. Fool.com. Retrieved on 2013-07-19.</ref>