401K transfer
If I’m not happy with the results of my 401K options with my employer are there any restrictions to transferring that money (or part of it) to an IRA while I’m still employed with the same employer?
If I’m not happy with the results of my 401K options with my employer are there any restrictions to transferring that money (or part of it) to an IRA while I’m still employed with the same employer?
Permalink Submitted by Martin Helmer on Tue, 2008-06-24 21:28
Yes there are restrictions. Under the rules, the portion of your account that’s attributable to your elective deferrals is restricted more than the portion contributed by the employer. See Form 9002, Roman section VII. Many plans are more strict than they absolutely have to be. For example, even if you’re 59 1/2, most plans won’t distribute to a person who’s still in service with that employer, even though the law allows it. As a practical matter, most plans won’t permit pre-separation from service distributions of employer money either.