Roth IRA conversion from a company sponsered 401k
Can I convert funds out of a company sponsored 401k plan (where I am currently employed) into my own personal Roth IRA account? FYI, I am not yet 59 1.2. Thanks. Andy
Can I convert funds out of a company sponsored 401k plan (where I am currently employed) into my own personal Roth IRA account? FYI, I am not yet 59 1.2. Thanks. Andy
Permalink Submitted by Alan Spross on Sun, 2010-12-19 20:36
You probably are not eligible for an in service distribution prior to 59.5, although some plans allow you to take out certain parts of your balance.
Another possibility are the new provisions to convert within your plan to a Roth 401k account. This is new and the IRS has just released guidance, so your plan will probably not be ready to process these conversions for a time, but check with your plan. The plan must offer a designated Roth option for this to take place. Also note that you cannot recharacterize an in plan conversion like you can with a Roth IRA conversion.
Note that a plan may adopt provisions that allow you to convert within the plan, but still not allow you to distribute funds FROM the plan in a conversion to your Roth IRA.
In summary, since your options here are very plan specific, check with the plan administrator what options are available to you now (time limited for 2010 conversions) or will be available next year.