Over funded 401K plan

what solution, if any, is there to handle over funded 401K account, to reduce penalty and taxes ?



This would generally involve such rollovers after separation/retirement and before Medicare (IRMAA), Social Security and/or RMDs. When your AGI would be lower and hopefully subject to lower marginal tax rates.
Also, there may be cases where such rollovers would be tax-advantageous prior to separation/retirement.
However, the tax code and IRS regulations prohibit in-service rollovers prior to age 59.5.
In-service rollovers of employer contributions are allowed prior to age 59.5 subject to the 401k plan’s own restrictions.

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