Partial rollover of 401k funds to a R/O IRA
Hello
Is is possible to make partial transfers (direct or otherwise) of 401k funds to a R/O IRA, regardless if one is working or not? IRS Pub. 590 indicates that is it possible but specific 401k plans may not allow it. Is this correct?
Many thanks!
Jeff
Permalink Submitted by Alan - IRA critic on Thu, 2014-02-20 04:04
Correct. Qualified plans may allow in service distributions of certain portions of the balance at various times, however the employee deferrals to the plan cannot be distributed before age 59.5.
Permalink Submitted by Jeff Watkins on Sat, 2014-02-22 22:13
Hello Alan. I don’t undertsand what you mean by “employee deferreals cannot be distributed before ag 59.5” Please elaborate.Many thanks for all that you do. ri096a
Permalink Submitted by Alan - IRA critic on Sat, 2014-02-22 22:25
Employee deferrals are YOUR own contributions to the 401k, as opposed to employer matching contributions, forfeitures. after tax contributions or rollovers into the plan you may have made. Those deferrals cannot come out before 59.5 unless you take a hardship distribution and they cannot be rolled over to an IRA.