401K to IRA

If you take possession of the funds, your 401(k) admin may try to withhold 20%. You want to be sure they make the check payable to your broker as custodian of your IRA/Roth accounts. When I took the cash value of my pension as my employer canceled it, the check came to me, but was made out as I described. Other than that, you got it right.

On a related topic, you can use Roth IRA conversions to "top off" your bracket each year if that will help you keep your retirement taxes reasonable, and keep RMDs from running away on you.

Joe

Thanks for the reply. The procedure as outlined to me is that the after tax withdrawal check would be made out to me, but as these are after tax funds I don't think there is any issue of tax withholding, is there?

I had another question: If I go ahead and do this partial withdrawal and transfer to IRA's this year, is there any limitation (other than what may be imposed by the 401K administrator) to making further withdrawals/transfers in the future with the funds remaining in the

Thanks.