Transfer 401k to IRA
Husband’s company purchased by another company that does not offer 100% guaranteed 401k. We can direct transfer 401k to IRA. Anything I should be wary of?
Husband’s company purchased by another company that does not offer 100% guaranteed 401k. We can direct transfer 401k to IRA. Anything I should be wary of?
Permalink Submitted by Alan - IRA critic on Mon, 2016-10-31 18:58
He might keep the 401k in place if you live in a state with poor IRA creditor protection and you have exposures to creditors. Sounds like there is no plan at the new company that would accept a transfer of the old plan balance. Such a transfer would preserve the age 55 separation from service penalty exception on the balance, otherwise that feature is forfeited by the buyout. In most cases the IRA direct rollover would be preferable.