401(k) rolled into an IRA account, while still employed
Hi,
Can my 40 year old client rollover his 401(k) into an IRA, while continuing to participate in his company’s 401(k) plan?
We’ve had clients over age 59 ½ successfully rollover in the past. Does it still work if your younger than 59 ½?
Thanks!
P.S. Is it called an “in-service” rollover?
Permalink Submitted by Alan Spross on Wed, 2008-09-03 20:47
Lacking a unique provision for the particular plan, the employee would not have access to the funds. Some plans do allow in service rollovers at 59.5 or other date toward the end of careers for the particular industry.
Typically, the client would have to separate from service. If he received a hardship distribution, that CANNOT be rolled over.
Permalink Submitted by Clyde Wolf on Wed, 2008-09-03 23:53
The Unique Provision in the 401k plan that Alan refers to would be found in the 401k Summary Plan Description. Everyone should be giveen a copy of the plan when they begin contributing to the plan. Because these plans are changed from time to time, some employers may have their Summary Plan on line.