Q. My husband has 10 years of Air Force service and is in the process of negotiating to take a federal position. To buy back his service, is it possible to use a 401(k) rollover? I am thinking not, since a rollover is only allowable to an IRA or other “qualified plan.” We certainly can take a direct taxable distribution of a portion of that 401(k) plan and use that money to buy back, but he wondered if it can be done with the rollover.
A. No, it can’t.