401K rollover question
I have a client that rolled an old 401K into his new job’s 401K program, are those funds, the old 401K, eligible to be rolled out of the new 401K plan and into an IRA??
I have a client that rolled an old 401K into his new job’s 401K program, are those funds, the old 401K, eligible to be rolled out of the new 401K plan and into an IRA??
Permalink Submitted by Greg Henson on Tue, 2012-06-12 14:41
That depends on the new 401K plan rules. Your client should get a copy of the new 401k SPD as that document will lay out the options available. I’ve seen different plan designs where the new 401k will allow for money rolled into the plan to be withdrawn/rolled out at any time but I’ve also seen it where the money rolled into the new plan not be eligible for withdraw until retirement/termination/hardship. It just depends on the new plan’s document. The SPD is your guiding document for participants and can be obtained at the recordkeeper (Fidelity, etc) or through HR.
Permalink Submitted by Eric Woodfill on Tue, 2012-06-12 20:44
Thank you