401k and Rollovers

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L1: 401k and RolloversPlease advise if a premature withdrawl taken from a 401k, then rolled into an IRA, within 60 days,restricts either the 401K or IRA from further rollovers (direct/indirect)per the 365 day rolloverrule. I understand the IRA to IRA 365 rule, but does a 401K plans fall into the same rule ever. Also, I have read many postings and thanks to your site, Iam awareof the 20% mandatory withholding from 401K direct withdrawls.
Thanks, Bob2006-12-06 08:36, By: cartows, IP: [72.86.2.180]

L2: 401k and RolloversNo, there is no restriction for the conditions you posted. The 1 year waiting period applies only to distributions FROM an IRA. When you roll IRA funds to another IRA, you must also wait a year to roll funds out of the second IRA. A rollover from an employer plan to an IRA does not count as the first rollover since the funds did not originate in an IRA. Therefore you have a rollover available from the IRA that accepted the employer plan, whereas you would not from an IRA that accepted an IRA rollover.2006-12-06 17:02, By: Alan S., IP: [24.116.66.98]