Rollover to an IRA
Good Morning
I continue to receive differing answers to the following question:
It’s my understanding rollover dollars and earnings (separately accounted for) in an employer plan (i.e. 401k) can be rolled back out (into an IRA) at any time (even while still employed). Correct?
Is this an IRS rule or is it an optional plan provision? What IRC section can the regulation be found?
Thank you
Permalink Submitted by Greg Henson on Thu, 2012-06-14 16:41
Are you referring to money that was rolled into the 401k from an outside qualified account? If so, then it is a plan provision, not IRS. Not all plan sponsors allow for rollover money to be available for in-service distributions for active employees. You would want to get your hands on the Summary Plan Description (SPD) to see if that option is available.
Permalink Submitted by ShipsnGiggles on Thu, 2012-06-14 18:13
mrgreghenson
Thank you for your response.
Yes, I was referring to dollars that were rolled in to the employer plan from an outside qualified account.
Are you aware of th IRC section that discussed this rule? My response is receiveing a lot of “pushback”
Thankyou