401(k) rollover and military buyback


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.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

Leave A Reply