401k equity and mutual fund positions
In a 401k, 403b, 457 plan…..is the “departing” employee granted the option to rollover the equity positions (in-kind) to his IRA?….mutual fund positions?….if so, is it the plan description that dictates whether this option is available or not?….Thanks…JPR
Permalink Submitted by mk foss on Wed, 2009-05-13 16:24
There are no IRS prohibitions regarding the transfer of retirement plan assets in kind to an IRA. However, most plans “cash out” a former employee and will transfer the cash to the IRA. Most folks that I am familiar with only learned that an “in kind” distribution was not available when they tried to accomplish one.
You also need to check with the IRA custodian. Not all of the mutual fund positions are accepted by all of the custoidans.