401k transfers prior to 59 1/2
Ed,
I have a number of clients who would like to transfer part of their 401k assets to a variable annuity that provides living benefits that their current 401k provider does not provide. These individuals are under age 59 1/2. Can they do a 410k transfer to a qualified variable annuity IRA, to take advantage of the living benefits, continue making 401k contributions to their current plan, and not be subject to the 10% excise penanly tax.
Respectfully.
Mark D. Coppolella
Permalink Submitted by Anonymous (not verified) on Mon, 2010-01-25 04:04
(I’m not Ed):
But the short answer is that it all depends on the plan document of the 401K and if they allow partial rollovers and/or transfers while being an active participant. My guess is NO.
pmk