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Any Way To Move 401K Into Self-Managed IRA?

I understand that after you leave employment of a company with a 401K plan in which you participate, you can move that 401K into a rollover IRA. Is there any "backdoor" provision that would let you periodically seize funds in a 401K plan while you are still employed?

The issue is flexibility of investments. Rollover 401Ks at a brokerage are typically very flexible and allow investment in individual stocks, foreign ordinary shares, and individual corporate bonds. 401K investments tend to be very restrictive.

The 401K advisor and fudiciary have zero incentive to assist with getting funds out of a 401K. Obviously they are paid fees based on the amount of funds under management, so I am not expecting that they would make it easy to take control of those funds.

Reply to
W
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So far as I know this is impossible. I am guessing the reason is the 401(k) industry players do not want to let go of all those assets under management and the law is catering to them.

Even after you're no longer an employee, getting the funds transfered out can be no small feat.

S.

Reply to
Steve Pope

If they allowed this, then what would be the point of having a distinction between IRA and 401K? 401K's allow you to contribute more, and get employer matches, at the expense of being limited to their investment options.

Although some 401K plans have pretty good options. I've worked at several companies where we could choose from most Fidelity funds, as well as a few non-Fidelity funds.

I've left several companies (some voluntarily, some not) and never had any problem transfering my 401Ks to my broker. I don't remember the details, but I think I just filled out a form with the broker information and they just took care of it.

Reply to
Barry Margolin

Maybe, but don't hold your breath.

Some company plans allow for "IN SERVICE" withdrawals. But the companies that allow this are few and far between. I used to have a list of companies that allowed this but it is several years old and can't be relied on any longer.

Contact the folks in your HR department and ask for a copy of the current plan document. You'll need to read through the plan document and see what it says. Do NOT expect anyone in HR to know, most of them don't. You may also be able to find out by contacting the plan custodian or the Third Party Administrator, they may know.

Gene E. Utterback, EA, RFC, ABA

Reply to
Gene E. Utterback, EA, RFC, AB

Some employer plans do allow for disributions while still working if you are over age 59.5.

Reply to
Arthur Kamlet

snipped-for-privacy@panix.com (Arthur Kamlet) wrote in news:inggi9$ncj$ snipped-for-privacy@reader1.panix.com:

TIAA-CREF allowed me to borrow against the value of (some of) my 403b7. Or is that one of the differences between 401 and 403?

Reply to
Han

Some 401k systems let you pick your own stocks. Fidelity has something called brokerage link which in effect is your own mutual fund.

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