An employee quits his job and has the choice of rolling his vested Profit Sharing distriution into his personal IRA or rolling it over into his new employer's profit sharing plan. If he chooses to roll it into his IRA, then he can later roll that IRA over again into another IRA (after a one-year period has lapsed, according to the tax code)

HERE'S MY QUESTION:
If he had choosen to roll the Profit Sharing distribution into his "new employer's" profit sharing plan, then does the tax code allow him (withhot penalty) to re-roll it from his "new employer's" plan to an IRA (several years later) while still employed with the new employer ? (Assume the participant is UNDER age 59 1/2).

The answer to your question will depend on the new employer's plan provisions. The rollover would not be eligible for distribution from the new employer's plan until a distributable event has occurred. A plan may (but is not required to) allow in-service distributions on rollover accounts. The employee needs to get a copy of the SPD for the plan of the new employer before he makes the decision to rollover. The SPD will state when distributions may occur.

I agree 100% with Richard Anderson's comments.