401K rollover questions
Hi,
I have a 401k plan and I’m allowed to do an in service transfer. I’m inclined to do the transfer. However, I have concerns if I would be losing creditor and/or bankruptcy protection. I live in Pennsylvania.
Also, if I do the transfer should I set up a separate Rollover IRA account? Or just add it to my present Rollover IRA account at the receiving institution? Thanks for any help.
Francis
Permalink Submitted by Alan - IRA critic on Mon, 2023-06-26 21:29
Rollovers from qualified plans are fully protected from creditors in PA. You can roll the plan into the current rollover IRA if it is a pure rollover IRA, but best to not commingle it with contributary IRA accounts.